TVNZ to pay government dividend despite underlying operating loss
Its underlying result, which excludes the adjustment, was a loss of $18.7 million.
Television New Zealand (TVNZ) reported a statutory profit of $16.3 million for the year ending June, although the bulk of the result was driven by a $34.9 million non-cash impairment adjustment. Excluding this adjustment, the company experienced a loss of $18.7 million on an underlying basis, with operational earnings (EBIT) falling to $23.5 million. TVNZ had previously highlighted this loss, attributing it to $27.6 million in planned strategic investments aimed at driving long-term digital growth.
Despite the underlying financial challenges, the broadcaster announced it would pay the government a dividend of $2.2 million, totaling $3.8 million for the year. CEO Jodi O'Donnell described the results as positive, emphasizing that the company was making significant strides towards a stronger, more sustainable digital future through its Digital+ 2030 strategy.
Advertising revenue, which constitutes the majority of TVNZ's income, decreased by 8% year-on-year, while digital revenue grew by 16.8%. However, overall total revenue fell to $262.9 million due to a tough first half of the financial year.
O'Donnell expressed confidence in TVNZ's path, stating that while there is more work to be done, the company is on track and prepared for the future. Looking ahead, TVNZ anticipates reporting a loss in 2027 as it completes its two-year investment program, with profitability expected to return in the full year 2028. O'Donnell affirmed that the upcoming year will be crucial for delivering on the investments made and positioning TVNZ for a stronger, more sustainable future.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
