TVNZ Announces Digital Growth Amidst Challenging Economic Environment

TVNZ reported EBITDAF of $13.8 million for the six-month period ended 31 December 2022.

TVNZ’s advertising revenue was relatively stable at $171.3 million, a decrease of 1.1% year-on-year. Sustained revenue performance in challenging economic conditions can be attributed to growth in digital and a retained market leading share of television. Total revenue of $180.3m declined 1.9% YoY due to non-recurring revenue received in FY22.

Operational expenses of $166.4 million were up $12.2 million on last year. This increase reflects an investment in people as well as a renewed investment in TVNZ’s digital future, which was accelerated after a pause during the Covid-19 period.

TVNZ reported a FY23 interim Net Profit After Tax of $4.8 million, down $10.4 million year-on-year.

Simon Power, TVNZ Chief Executive, says, “Overall this is a solid financial performance for TVNZ. We are aware of economic headwinds ahead and the need to respond appropriately. We are well positioned to weather these conditions and advance our ambitious digital strategy, ensuring the business will be able to deliver at scale for the audiences of tomorrow.”

Delivering Digitally

“TVNZ+ is now watched by over 1.1 million viewers a week. In the first half of FY23 the platform recorded more than 173 million streams. Digital revenue also grew 16% YOY. These are big numbers, and we are focused on growing our reach further by expanding our content catalogue and continually improving the user experience.

“TVNZ’s future is undoubtably digital. Broadcast television audiences will continue to move to streaming options and transitioning these audiences to our digital offerings and growing the accompanying digital revenue is critical for our future success.

“Leveraging our broadcast audiences will help us deliver this audience transition. Our news and current affairs performance exemplifies this, with 1 NEWS at Six the most watched show across TVNZ 1 and TVNZ+. We’re excited about the opportunity a greater free-to-air sports slate (in partnership with Spark) will bring us too. New Zealanders love live sport – whether watching on traditional TV or streamed - and we’re proud to be the home of NZ Cricket from July 2023.”

ANZPM Cancellation

TVNZ’s interim result coincides with the Government’s decision to stop work on ANZPM, the proposed merger of TVNZ and RNZ.

“A lot was gained through the ANZPM process, including a close look at public media and our sector more broadly. These insights will help inform TVNZ’s strategy and direction.

“The challenges facing our media sector have not disappeared and while ANZPM will not be the vehicle that addresses these challenges, it’s clear that we need to move faster and make bold choices to continue to play an important role in New Zealanders’ daily lives.

“We were clear from the outset that until the ANZPM legislation passed, we would continue to work to our current TVNZ mandate. This has ensured we remained focused on our core objective of delivering high-quality entertainment, trusted news coverage and storytelling that reflects and inspires Aotearoa.

“I couldn’t be prouder of TVNZers for what they’ve achieved this year so far, particularly throughout a prolonged period of uncertainty.”

2023 Outlook

Inflationary pressures and interest rate increases are likely to deliver a softer domestic advertising market through the remainder of 2023.

Power says, “Maintaining our balance sheet strength will be a priority so we can continue with our transition to a fully digital future.”

© Scoop Media