TVNZ has declared a net profit of just over 28 million dollars.

That's ten million up on last year - and comes despite a 2.9 percent drop in advertising revenue.

CEO Kevin Kenrick said it's particularly encouraging given what he describes as the tectonic shifts occurring in the media industry.

He said the state owned broadcaster has grown its audience share off the back of strong performances from its news and current affairs programmes, pointing out the gap between One News and TV3 news is at its greatest in ten years.

TVNZ has also upgraded and re-launched its online services, delivering 97-million online video streams in the past 12 months.

Mr Kenrick said while TVNZ is performing well domestically, the competition for viewer eyeballs and advertising dollars is increasingly being driven by global players.