TVNZ gives staff $1000 bonus as profit jumps to $5.1m

TVNZ is awarding permanent staff a $1000 bonus as its net profit after tax lifts to $5.1 million.

The bonus is before tax and won't go to anyone who could earn performance incentives as part of their job.

"TVNZ has had a great year and this payment is to recognise the efforts of all our people who have contributed to the improved business performance," said chief executive Kevin Kenrick.

"We don't expect to repeat this level of profit growth in future years, but it has created a one-off opportunity for us to thank our people for their contribution and commitment to TVNZ's success."

Kenrick said the $1000 payout to staff recognised the business performance was really a reflection of everyone in the business. It was taking an opportunity from its improved financial position to reward staff.

He said a bonus like that had not been paid in his time at the company. "I think it was something we felt was appropriate."

The bonus would go to about 500 staff.

The net profit after tax of the broadcaster was $5.1m for the year to June 30, up from a low point of $1.4m in the last financial year. But it remained well below the 2016 profit of $12.7m.

Kenrick said its focus was on its operational profit which was a better reflection of the cash delivery of the business.

TVNZ's earnings before interest, tax, depreciation, amortisation and fair value
adjustments rose 58.6 per cent to $24.6 million and was largely stable after adjusting for a one-off impact last year for an onerous contract position.

Kenrick said the broadcaster had stable revenue for the first time in six years and the highest share of TV advertising revenue since 2010.

He said there had been ongoing cost control across the business after it went through a big restructure last year.

He said the key now was to leverage its strong financial position and greater confidence to accelerate its online streaming business.

Its On Demand service hit a milestone of 100 million streams for the year.

Shows like Shortland Street were a big driver of online viewership, he said.

"We have been increasingly shifting our content investment more towards local."

Kenrick said competing against global players, its local content was its point of difference and figures showed New Zealanders wanted that content.

Earning more from that part of the business was about driving critical mass of content to appeal to a significant number of viewers.

"In this environment scale is your friend."

But he noted it was already seeing double-digit growth in its online revenue. "We need to continue achieving that."

Kenrick said the biggest challenges it saw this year was the global scale competition and the ability of those players to invest billions of dollars in content creation and how you compete against that.

It was also keeping a close eye on the structural changes it was seeing in the industry in Australia. "We are mindful we could see similar changes appearing in the New Zealand market."

While there was a higher level of challenges faced by the broadcaster than a year ago Kenrick said its confidence was also higher than a year ago.

He saw a lot of opportunity to grow its online video content.

"We have got to stick to what we do well."