Television New Zealand today reported an after tax profit for the financial year to 30 June 2009 of $2.1 million.

The figure represents a drop of 89% on the previous 12 month period. TVNZ Chief Executive Rick Ellis said today that the company would be paying the shareholder a dividend of $1.47 million.

Mr Ellis said the operating environment for the financial year was one of the most challenging in history for advertising-reliant media. Without the cost reduction measures of the last six months the company would have been unable to remain profitable.

"Like many advertising-reliant media companies TVNZ's revenues were tracking well for the first half of the financial year, but after Christmas the impact of the recession on advertising spend took hold," he said.

"The company responded rapidly and well to the situation facing us, and it's only because of this prompt response that we have maintained a relatively strong position."

Despite the difficult year, he said there were many highlights. These included record audiences for TVNZ's Beijing Olympics coverage in August 2008, having all 20 of the top 20 highest rating programmes for the year* and winning eight of the 11 Qantas Media Awards for news and current affairs coverage.

The company's Digital Media division had a strong year, doubling online display revenues, increasing international programme sales and generating new revenue through mobile interactivity.

TVNZ reported total revenue of $384.8m and operating earnings of $10.1m for the year. Advertising revenue was $298.4m, a $17.1m (5.4%) decline on the prior year.

Operating earnings were $10.1m, a decline of $16.9m on the prior year. This decline was primarily attributed to the $17.1m advertising revenue drop.

Despite this TVNZ increased its television advertising revenue share from 58.9% to 60.9%.**

Mr Ellis said the company was cautiously optimistic about the 2010-2011 financial years.

"Advertising-reliant media companies are usually the first into a recession and the last out of one. The market hasn't quite bottomed out yet but we are hopeful that it will turn the corner by the middle of 2010."