The state-owned enterprise reported its after-tax profit for the half year to December 31 was $8.9 million, compared to $18.3m for the six months to December 2008 and $21.6m for the same period to December 2007.
Advertising revenues fell by 12.7% to $22.2m for the six months to December 31, with total operating revenue down 16.6% to $186.9m.
Its earnings before interest and tax were down to $14.2m, compared with $27.7m for the first six months of the previous year.
TVNZ chief executive Rick Ellis said cost reduction initiatives had made an impact but he said it was likely the year-end result would be a loss.
"There are a number of strategic reviews underway across the business as the company looks to further reduce costs, and to make the transition from an analogue broadcaster to a digital television and media company," he said.
"These will be substantially completed by the end of the fiscal year." On-line advertising revenue had grown by 174% and Mr Ellis said its offering of television and on-line bundles had been well received by advertisers.
He said ratings were strong, with TV2 recording its best ratings since 2003, and that its news division had done well by winning 11 of the 12 awards at the 2009 Media Awards.
