A slide in advertising revenue depressed TVNZ's profit by $2.4 million to $18.2 million for the six months to December.
TVNZ has instituted cost savings worth $25 million, including the loss of 90 jobs.
Excluding government funding of $30 million, TVNZ's revenue rose 5% to $193.5 million. However, costs rose 11% to $196 million, the result of covering the Olympics, expanding its new business arm, and outlays on its digital channels on Freeview.
The public broadcaster says the impact of the global economic downturn will make conditions tough for the remainder of the year, and into the next.