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TEN earnings tipped to drop by 40%

TEN's half-yearly earnings could drop by as much as 40% - news which sends shares diving.

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TEN Network has issued a market update on its half-year earnings to February 2012 which indicate a sharp drop in earnings and revenue.

Final results will be released on 12th April but the forecast is a 40% drop from the $106 million EBITDA in the prior corresponding period.

TEN Shares are down 9.3%, their lowest levels in almost three years.

After the surprise downgrade in late-afternoon trading, the value of the company’s stock dropped by $83 million.

New CEO James Warburton said the company’s earnings before interest, tax, depreciation and amortisation are now expected to come in at $64 million.

Television revenue is tipped to fall 12 per cent with costs down by 2%.

“The first-half results reflect tough trading conditions and a difficult final quarter to calender 2011 as the company re-set its cost base and focused on creating a more sustainable business,” Warburton said in a statement.

“The success of our Super Sunday line-up and our performance in the 5pm to 8pm timeslot, including The Project, this year has been pleasing. Many of the new programs we announced last year for 2012 will start to appear over the next few months, including Breakfast – which starts on Monday – Bikie Wars: Brothers in Arms and the return of Offspring and MasterChef Australia.

“Our multi-channels, ONE and ELEVEN, have posted strong growth this year and are the most-watched multi-channels among people under 50.”

TEN said it expected to realise $30 million of savings from its television business in the full 2012 fiscal year.

Source: smh.com.au

8 Responses

  4. On ya Lachlan. The man who’s been tapped to replace his radioactive sibling in trying to save the family’s British press empire (and prevent the malady spreading to their US interests) can’t even turnaround a TV network in the colonies.

    Obviously the perfect man for the job.

  5. This isn’t a shock considering the post a few weeks earlier said Television revenue was down (in Sydney at least) in the last half of last year. All eyes on Nine’s earning reports as well..

    What will this mean for the NRL rights battle?

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