Maharey defends TVNZ loss

Broadcasting Minister Steve Maharey took the flak for TVNZ's $4.5 million annual loss in Parliament today.

Yesterday the state-owned broadcaster released its financial results for the year to June 30, showing it had made an operating profit of $9.3 million on revenue of $375.2 million.

However a major restructure that saw the company shed about 150 staff - many receiving redundancy pay outs - cost the broadcaster $11.1 million, resulting in a $4.5 million loss after tax.

Advertising revenues for the year were down 6.5 percent to $312.8 million.

National Party broadcasting spokesman Jonathan Coleman said under Mr Maharey's watch revenue at TVNZ had plummeted by 24 percent from $492 million in 2003 to $375m in 2007.

"Did he understand that over a period of four years his broadcasting policy would end up delivering the loss of 160 jobs, a revenue drop of over $100 million and that he would have cut the value of the company by 50 percent?"

Mr Maharey said TVNZ was facing changes in technology that meant audiences behaviour was changing and that affected advertising.

"TVNZ like all broadcasters is moving from analogue to digital, that's happening all around the world, they are having to change because the change in viewing habits - many peoplee now watch their television on a computer or on a hand held advice."

Mr Maharey said TVNZ had a plan to cope which included its content being available on its website and agreements with Google Youtube and Fairfax for use of content with new digital channels on the way.

TVNZ chief executive Rick Ellis yesterday said the result reflected a soft advertising market, "channel performance issues", which were being addressed and restructuring costs.

He said the year was one of transition, but TVNZ was now well positioned for future growth.

Its restructure would bring savings of $17 million a year and a turnaround in advertising revenues was already underway.

- NZPA