Television New Zealand's first half profit is down 55 percent, with a substantial increase in spending on local content and other expenses.
Key numbers (for the six months ended 31 December 2021 vs year earlier)
- Net profit $15.2m vs $33.9m
- Revenue $183.7m vs $175.7m
- Operating expenses $154.2m vs $119.9m
The state-owned broadcaster's revenue rose 4.5 percent in the period, including a 5 percent increase in advertising revenue.
Chief executive Kevin Kenrick said the 29 percent increase in operating expenses reflected constraint in the last financial year.
"TVNZ achieved a record financial result in FY21 largely due to a lack of content availability and cost constraints designed to preserve cash," he said.
"We're now seeing a return to pre-pandemic levels of expenditure, and this is powering double-digit growth in digital audiences and growth in total revenue."
He said TVNZ generated $18.5m cash flow from operating activities in the six-month period and was well placed to fund continued investment in digital capabilities as well as cushion itself from volatility resulting from uncertain market conditions.
TVNZ's interim result coincided with a government plan to create a new public media entity with RNZ, with details expected to be announced shortly.
"TVNZ awaits Cabinet's announcement and will proactively support whatever future option is determined by our shareholder," Kenrick said.
Simon Power will take over as chief executive when Kenrick steps down at the end of the month.