A day after being left on the shelf, the Ten Network released third quarter sales and gross profit figures showing a tentative recovery from the black hole of 2006 is continuing for the country's third-placed commercial TV Network.
Ten said television division revenues for the three months to May 31 rose 10 per cent on same period a year ago, while earnings before interest tax depreciation and amortisation (EBITDA) rose 20 per cent in the three months.
The actual dollar figures for the third quarter were not broken out but it would seem TV revenues increased by around $18 million to $194.7 million in the quarter.
Group earnings before interest, tax, depreciation and amortisation (which include TV and the out-of-home business of Eye Group) was $29.6 million in the quarter, slightly down on the $30.3 million of the third quarter in 2006.
"Ten's ability to translate ratings success into revenue growth, and the recovering advertising market, have delivered this solid third quarter result," Ten chairman, Nick Falloon said.
"We also remain confident that Ten will better last year's TV EBITDA in financial year 2007,"he added.
Ten earned an EBITDA of $252 million in 2006, down sharply from the record $341.5 million in 2005. The TV EBITDA was $229 million, down on the $316 million of the previous year.
Ten will have to earn around $68 million in the final quarter to be confident of topping the 2006 figure.
It didn't break out its TV EBITDA for the nine months.
On a year to date basis, the company's group revenue jumped 8.4 per cent to $729 million, but group EBITDA fell 7.1 per cent to $186 million.
Ten Holdings will pay a fully franked second ordinary dividend of 4.0 cents per share, maintaining the Company's policy of distributing 100 per cent of available earnings.
The company's outdoor advertising business, EYE Group, experienced revenue growth of 13 per cent for the quarter in its Australian and New Zealand businesses.
But it also had start-up costs of about $4 million for its North American and new UK businesses during the period, which were likely to add up to $15 million for the full financial year.
The expensing of these costs has been telegraphed to the market.
"EYE continues to focus on returns from its established businesses while we replicate the profitable Eye Shop and Eye Fly models in the US and UK," Mr Falloon said.
The statement was notable for no comment on costs, usually a strong selling point for the Network.
Ten shares ended 7c lower at $2.87 on a solid volume of more than five million shares.
There's obviously been selling by punters and others disappointed there would be no buyout.
