Newshub, owned by Warner Bros. Discovery, shut down operations last month. Photo: Screenshot / Newshub
The owner of New Zealand television channel Three posted a hefty loss last year, as advertising revenue fell sharply and as it wrote down the value of assets.
Warner Bros. Discovery New Zealand (WBD), which owned television channels Three, Bravo Eden and Rush, and online platform Three Now, revealed a $138.2 million after-tax loss for the 12 months ended December 2023, compared to a $34.9m loss in 2022.
Revenue fell 17 percent to $131.9m, with advertising income falling by $23.4m in what was a challenging period for all commercial media players in New Zealand.
The results also included a $79.5m accounting write down in the value of its assets.
WBD announced the closure of its news operation Newshub earlier this year, but it came after its 2023 financial reporting period.
The company's directors expected $14m of redundancy costs to be included for the 2024 financial year following the closure of Newshub.
Auditors PwC said the ability of WBD to support its operations was "dependent on whether the company's strategic transformation initiatives will be sufficient to mitigate the impacts of the decline in the advertising market".
It was also "reliant" on WBD reducing its reliance on its US-based owners for financial support.
"There are also uncertainties relating to the ultimate parent entity's willingness to continue to provide financial support beyond the 12 months from the date of signing of these financial statements if the strategic transformation initiatives do not sufficiently reduce the company's need for such support."
PwC said it highlighted "material uncertainties" and "may cast significant doubt" about WBD's future in New Zealand.
