Television New Zealand reported 89% decline in its after tax profit that stood at $2.1 million by 30 June 2009. Huge losses were suffered on account of decline in advertisement activities during the highly challenging period.

Rick Ellis, CEO of TVNZ said: "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 that the state broadcaster adopted a number of cost-cutting measures that helped it to maintain a relatively strong position. Its Digital Media Division performed well and increased revenue despite tight economic conditions. TVNZ's operating earning stood at $10.1 million for the year due to efficient measures adopted by it to curb additional costs.

The firms' total revue stood at $384.8 million during the period, including $298.4 million advertisement revenue. However, despite all odds, the firm managed to increase its television advertising revenue share from 58.9% to 60.9%.

Ellis further said: "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."