A serviceable result from the Ten Network at the end of a difficult year for the country's third commercial TV network.
But according to management the outlook is better than it has been, with higher earnings for 2008 forecast, despite more losses on expansion by its outdoor business overseas, and there's the prospect of capital management and corporate activity to put a bit of zip into the share price.
But in yesterday's sagging market investors said 'ho-hum' and marked the shares down 7c to $2.78.
Investors had wanted something hard and fast on capital management with media reports over the past week of a capital return being planned.
Executive chairman, Nick Falloon, went out of his way to stress that capital management was on the agenda for the company, but he said the fact that Ten had been paying out 100% of earnings as dividends meant it didn't have excess franking credits.
He indicated any capital management would be more towards a capital return than a special dividend for that reason.
He also said Ten had 'growth options' under review, but wasn't specific.
He also said the company wanted to maximise its revenue to move closer to its audience share in its key demographics of 16 to 39 and 18 to 49.
Mr Falloon said that for the first time the company could market itself to foreign investors because Canwest had converted its holding to equity and there was no longer any limit on foreign investment.
Ten says it is confident of beating its 2007 television earnings this financial year.
Ten's television EBITDA rose 3.55 to $237 million in the 12 months to August 31, 2007.
It says its first quarter, which ends on November 30, will see double digit growth, and that will ensure the higher result, even though the Beijing Olympics will be on Seven next August in the last month of the company's 2008 financial year.
The first quarter accounts for around a third of Ten's earnings for the full year and the company says its confident this double digit profit growth will see the 2007 figure beaten.
"Ten's momentum has continued into the first quarter of 2008, with another double digit revenue increase expected," Ten executive chairman Nick Falloon said.
"And, we are confident of surpassing 2007 TV EBITDA (earnings before interest and tax), despite the Beijing Olympic Games."
And the broadcaster has posted a 44% increase in annual net profit to $66.13 million.
The company also announced a restructure of its board, to reflect the presence of CanWest Global Communications Corp interests which recently assumed a controlling stake in the broadcaster.
As a result, directors Laurence Freedman, Paul Harris, Irene Lee, Geoff Levy, Robert Magid and Brian Sherman have resigned.
"I personally thank them for their support to me over my six years as chairman," Nick Falloon said.
"Most have been directors of Ten Holdings since it listed in 1998 and also directors of companies within the Ten Group, in some cases for up to 15 years."
Joining Mr Fallon on the board as directors will be CanWest president and chief executive, Leonard Aspe,r and CanWest president corporate development and strategy implementation ,Tom Strike.
Mr Asper will also act as deputy chairman.
Directors Jack Cowin, Paul Gleeson, John Studdy, and Peter Viner remain on the restructured board.
"The revised board composition meets the Foreign Investment Review Board requirement that the majority of Ten Holdings' directors be Australian citizens," Ten said.
Ten, Austar and Fairfax are pure plays, unencumbered by a holding company structure that PBL will soon spin off into Consolidated Media Holdings, the Seven Network, or Macquarie Media. Big investors apply a discount to these holding companies (in the case of Seven its around 10% and more some times on the underlying value).
Ten could merge with any number of stocks: its now open to do deals large and small.
For the first time its not a TV business built around an untidy corporate situation which held it back.
