TVNZ announces half year profit drop of only 12%

TVNZ has reported a satisfactory performance for the first half of the financial year, but has warned that the impact of the global economic downturn will make conditions tough for the remainder of this fiscal year and into the following one.

The after-tax result for the half year was a profit of $18.2 million, down $2.4 million on the same period last year.

Operational earnings (earnings before interest, tax and financial instruments) were $27.7 million, compared with $32.3 million for the same period last year.

Chairman Sir John Anderson said the result was pleasing in the circumstances but said the impact of the global economic downturn was already apparent and, like all other businesses in 2009, TVNZ would face significant constraints due to worsening conditions.

Chief Executive Rick Ellis foreshadowed a difficult second half year following the rapid slide in advertising revenue that has affected New Zealand and international media companies since January. TVNZ has just completed a $25 million cost reduction plan which includes the loss of approximately 90 jobs.

The Interim Report FY2009 is published on the TVNZ website – tvnz.co.nz – under About TVNZ/publications.

Click on http://tvnz.co.nz/view/page/816460/845018 to view.

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