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TVNZ is enjoying record digital audiences, offering hope and a clear direction for the future as it posts a big financial loss in a tough economy.��

TVNZ has posted an after-tax loss of $85 million - including a non-cash impairment of $62.1m - with more cost-cutting set to impact the state broadcaster as it reshapes itself for a digital-first future.��

The broadcaster announced today an EBIT (operational earnings) loss of $28.5m for its financial year ended June 30 - in line with its earlier market disclosure of an expected $28m-$33m loss.��

It expects a similar loss this financial year, although it is working with staff on ideas to either raise revenue and/or cut more costs to close this $30m gap.��

After a small net profit of $1.7m in 2022/23, TVNZ has been harshly hit by poor economic conditions over the past 12 months, with a big drop in advertising revenue.��

Its overall revenue dropped almost 12% to $288.9 million, from $327.6m the previous year. Advertising revenue was $272.7m, compared with $309m in the previous 12 months.��

The company said it had achieved $9.9m in annualised savings from its well-publicised programming (Sunday,��Fair Go) and staff cuts and other cost reductions. There was a net reduction in TVNZ’s cash reserves of $7.4m.��

The non-cash impairment reflected a re-evaluation of the company’s assets across the board, said O’Donnell, including its building in central Auckland.��

TVNZ is a state-owned enterprise that does not receive taxpayer funding. However, its financial situation means it won’t be paying a dividend to its shareholder - the public - once again this year.��

TVNZ chief executive Jodi O'Donnell.��

Financial outlook��

TVNZ chief executive��Jodi O’Donnell��described conditions as “extremely challenging” for advertising-funded broadcasters globally.��

As well as announcing TVNZ’s financial year results, O’Donnell also gave a 2025 financial year outlook, which gave a glimmer of hope.��

The market decline was moderating in this current quarter, she said.��

“We are cautiously planning for a stabilising of the economy and expect challenging market conditions to continue until the end of the calendar year,” said O’Donnell.��

“We continue to be disciplined on our cost outlook and are working with our people to find solutions to a $30m challenge in FY25. We need to stabilise losses quickly and continue with a multi-year programme to strengthen our streaming technology.��

“We have a clear commercial mandate, and will deliver on this and innovate at pace to be a more sustainable media business.”��

O’Donnell confirmed the company was considering all options to diversify its revenue, so it did not have as big a reliance on the advertising market.��

This included��the possibility of entering the subscription television market.��While there were no immediate plans, all options would be considered in the next five years, as TVNZ developed its digital-first plans.��

She said the company had proven its ability to deliver “must-watch” content.��

“Now our focus is on maximising new ways to monetise our content so we’re in a strong position to take advantage when the market stabilises.”��

TVNZ's Jack Tame. Photo / TVNZ��

Digital strategy on track��

O’Donnell remained confident the broadcaster’s digital-first strategic plans were on track.��

TVNZ+ achieved 25% year-on-year viewership growth, recording 464 million streams for the period. Weekly audience reach had increased 16%.��

Digital advertising revenue also grew (up 8.2%), “providing a clear commercial path for the company”.��

“TVNZ successfully executed on its strategy to deliver compelling content that drove growth in audience reach in FY24,” said O’Donnell.��

“TVNZ was the highest-reaching content provider across TV and TVNZ+, ahead of YouTube and Netflix, and��1��һ�ǿ�������was surveyed as the most popular and trusted source of news.��

“Despite this, and our careful management of costs, our financial performance reflects a constrained economy, market disruption and a difficult advertising market. It has been an extremely challenging period for ad-funded broadcasters globally, including TVNZ, but we are confident in our turnaround plan and digital strategy.”��

She said TVNZ had sufficient cash to fund its digital strategy over the next three years.��

The broadcaster was once again, not in a position to pay a dividend to its “shareholder” - ie, the public - in light of the loss.��

“The company is in a position to address its multi-year tech debt, build a robust and scalable IP platform to support its digital progress, and return to profit.”��

��һ�ǿ����� and sport content��

O’Donnell said TVNZ was transforming the presentation of news and current affairs to digital audiences, including more prominent news content on TVNZ+.��

“We’re seeing good growth in our digital news, with a 16% increase in weekly news viewership on TVNZ+ in FY24.”��

Sport was now a cornerstone of TVNZ’s content offering, she said.��

“On TVNZ+, cricket, Black Clash and Super Bowl, and other key sporting events drove significant streaming audiences and new sign-ups. In June 2023, TVNZ+ launched a dedicated home for sport, and in its first 12 months, sport content was viewed by almost 910,000 accounts, with close to 15.4 million streams.”��

Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at ��һ�ǿ����� including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in ��һ�ǿ�����.��