Television New Zealand (TVNZ) has said its total operating revenue has dropped 16.6 percent due to heavy declines in advertising. It said ad revenue dropped NZ$12.7 million (US$8.8 million) year on year, with total operating revenue dipping to NZ$186.9 million (US$130 million) for the six months to December. TVNZ reported earnings before interest and taxes of $14.2 million (US$9.9 million) compared with $27.7 million (US$19.3 million) for the previous period, and an after tax profit of $8.9 million (US$6.2 million) compared with $18.3 million (US$12.8 million) for the prior year. According to Rick Ellis, chief executive of TVNZ, while cost reduction initiatives had offset some of the impact of revenue declines, the company will continue to look for ways to adjust its ongoing cost structure to the realities of a post-recession era.