Ten enjoys ad surge
December 3, 2003 - 3:06PM
Ten Network Holdings Ltd has made a strong start to its new financial year, with a 20 per cent surge in TV advertising revenues and higher than expected dividend payment for shareholders.
Executive chairman Nick Falloon said Ten had made an "exceptional start" to 2003/04, with strong advertising revenues driving first quarter earnings before interest, tax, depreciation and amortisation up (EBITDA) 37 per cent.
The strength of Ten's earnings has allowed the media group to increase its final dividend payment for 2002/03 to 9.5 cents per share from the eight cents it previously expected to hand over to shareholders in January.
There will also be a 5.5 cent a share special dividend.
Despite the upbeat start to 2003/04, Mr Falloon declined to give any forecasts for Ten's earnings for the entire year.
"Nevertheless, we expect good growth in revenue and earnings for the current financial year with a strong return to shareholders through our twice-yearly dividend payments," he told shareholders at Ten's annual meeting.
The news pushed Ten's shares up six cents to $2.84 by 1400 AEDT.
Ten enjoyed huge ratings success with the pop star contest Australian Idol during the three months to the end of November, a period which is traditionally the biggest contributor to Ten's annual earnings.
Mr Falloon said Ten would have its "best ever line up of shows" in 2004, including another series of Idol plus other reality show hits including Big Brother and a local version of Queer Eye for the Straight Guy.
The head of Ten's TV business John McAlpine said the network was currently in talks with advertisers about ad rates for 2004 and believed Ten would "get the increase that we deserve" based on its program ratings success in 2003.
He added that he expected the TV ad market to grow between four and five per cent in 2004, slightly lower than some market watchers who have forecast seven to nine per cent.
Based on demand so far this month, Ten expects "low double digit" TV revenue growth in December, Mr McAlpine told reporters and analysts after the shareholder meeting.
Looking ahead, Mr McAlpine said he expected the summer non-ratings period to be more competitive than previous years.
"I think you will find January generally in the market place that it will be the most competitive January you have ever seen," he said.
"People are trying to get their runs on the board before we get the official (ratings) survey in February."
©2003 AAP
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