TVNZ has blamed heavy investment in digital technology and "premium content" for its profit falling significantly in the past year.
The broadcaster recorded a profit of $7.9 million for the 2022 year – down $51.3 million on the previous year.
Total revenue for the year was $341.7 million, an increase of $1.7 million year-on-year, while advertising brought in $321.0 million, $1.3 million lower than the previous year.
Operating expenses jumped by $62.3 million to $315.6 million, and content costs of $189.5 million increased 33.6% year-on-year as production resumed after Covid-related delays.
CEO Simon Power said the financial results reflect investment over and above pre-pandemic levels ahead of the move to the public media merger with RNZ next year and ongoing targeting of digital audiences.
It relaunched TVNZ OnDemand as TVNZ+ and is moving towards a digital future with technology changes including a new “IP-platform”.
“We know the future is digitally delivered – the shift in audience behaviour is clear. The new media entity will need to place emerging platforms at the heart of its design, while continuing to deliver TV and Radio, if it is to succeed,” Power said.
“In the last financial year, more than 2 million Kiwis engaged with TVNZ+. But to successfully compete with global streaming giants, significant and sustained investment is needed.
“The work on a new IP Platform is a multi-year project, and we see this as wholly consistent with what the new media entity is seeking to deliver. This platform has the potential to serve the new entity while collaborating with the local media sector.” said Power.
TVNZ saw a 22% year-on-year growth in digital revenue. It will not pay a dividend to the Government.
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