Ten reveals 20% profit drop

Ten’s TV profits have dropped by more than 20% on last year, the company has informed the market.

Compared to TV profits of $194.2m in the 2010 financial year, this  year the EBITDA number has closed at an estimated $153m.  

For the company’s outdoor business Eye, profits have grown from $15m to $18m, the company said. This is because although outdoor revenue declined in the period, the division reduced its costs by even more.

As a group, profits are likely to be $171m compared to last year’s $208.1m.

The company said that its strategic review – which kicked off in February when former CEO Grant Blackley was fired and replaced by Lachlan Murdoch on an interim basis – had led to a 12% reduction in staff numbers, saving $18m a year.

Like many media stocks, Ten Network Holdings is currently trading at a near historic low of around 92c – not much more than half what it was a year ago.

Wednesday will see the company announce its programming plans for 2012, which are rumoured to include a new breakfast show, reportedly called AM and presented by Andrew Rochford, a regular on Ten’s The 7PM Project and currently a presenter on Mix FM in Sydney.

Much of the remainder of this ratings year now depends on The Renovators picking up audience from those currently watching Nine’s The Block, which ends at the weekend.


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