[ad_1]
Newshub, which was owned by Warner Bros Discovery, ceased operations last month.
photo: Screenshot/Newshub
The owner of New Zealand TV channel Three posted a huge loss last year as advertising revenue plummeted and asset values were written down.
Warner Bros. Discovery New Zealand (WBD), which owns TV channels Three, Bravo Eden and Rush and online platform Three Now, posted a $138.2 million after-tax loss for the 12 months to December 2023, compared with a $34.9 million loss in 2022.
Revenue fell 17% to $131.9 million, including a $23.4 million drop in advertising revenue, in what has been a challenging period for all commercial media companies in New Zealand.
The results also included a $79.5 million accounting write-down on the value of its assets.
WBD Announces It closed its news business Newshub earlier this year. But that comes after its 2023 financial reporting period.
The company’s directors expect $14 million in layoff costs It will be incorporated into the 2024 financial year after Newshub closes.
Auditors PricewaterhouseCoopers said WBD’s ability to support its operations “depends on whether the company’s strategic transformation initiatives are sufficient to mitigate the impact of the advertising market downturn”.
It also “leaned on” WBD to reduce its reliance on financial support from its US owners.
“There is also uncertainty as to whether the ultimate parent will be willing to continue to provide financial support beyond 12 months from the date these financial statements are signed if the strategic transformation initiatives do not sufficiently reduce the company’s need for financial support.”
PwC said it highlighted “significant uncertainties” and “may cast significant doubt on WBD’s future in New Zealand”.
[ad_2]
Source link
