Business Fail of the Day

Oh dear. MediaWorks’ annual report, audited by PricewaterhouseCoopers, is not rosy.

There had been concerns about delays in [MediaWorks] providing its financial results to the Companies Office, which it must do as an overseas company. It missed two deadlines and directors faced a fine.

The annual report shows that the MediaWorks group suffered a loss of $125.9 million in the year to December 31, 2022, compared to a $4.9m loss the year before.

Its assets fell from $264.7m to $140.6m. It had negative working capital of $19.4m, from negative $2.2m a year earlier and cash balances of $12.7m, from $13.7m in 2021.

Stuff

MediaWorks made a net loss of nearly $126 million last calendar year, with liabilities exceeding assets by $19.4m.

The auditor said there was “significant doubt” about whether MediaWorks can continue to operate beyond June 2025, given its bank financing arrangements.

RNZ

Cranmer has provided the full PwC report:

Mediaworks has released its (heavily qualified) auditor’s opinion from PWC which casts doubt over the ability of the company to operate as a going concern. It highlights a stonking loss of $125.9m for the year ended Dec 2022. At that point current liabilities exceeded current… pic.twitter.com/oDzM7NsYNI

— Thomas Cranmer (@CranmerWrites) October 20, 2023

Discuss it on the BFD.