Australia's Ten reports financial results

Ten Holdings has reported falls in revenue and earnings but the parent company of Australia's Network Ten maintains that Ten remains Australia's "most profitable TV network."

In its half-year results, Ten Holdings reported a 5.7% decline in group revenues compared to the same period last year and a 7.7% decline in TV revenues (A$464.3m and A$400.5m respectively). Earnings before interest, tax, depreciation and amortisation were down 18.3% group-wide and 19.6% in the TV unit (A$169.9m and A$156m respectively).

"The Company’s weaker revenue and earnings reflect the softer trading conditions we flagged at our full year 2005 results and again at our AGM in December," said Ten's executive chairman Nick Falloon. "With the end of the long TV advertising boom, the competitive ratings environment and major sporting events impacting the start of 2006, we anticipated a different landscape this year and planned accordingly.

"As always, our ‘seriously different business model’ – with its focus on clear differentiation
from competitors, targeted demographics, careful expenditure, efficiency, profitability and
returns to shareholders - allows us to maximise results regardless of trading conditions. Our
best in class earnings and 39% television operating margin are testament to that approach."

Falloon said that Ten had expected 2006 to be "challenging," given Nine's coverage of the Commonwealth Games, but pointed to the network's strong performance in the key 16-39 and 25-54 demographics in this ratings year as evidence that the network was meeting the challenge.