TEN profit up

Network TEN has increased first half profits by 17%.

While TEN delivered a half-year profit of $270.5 million, the result was skewed by a $183.7 million tax benefit. The company said normalised profit was 16.9% higher at $86.9 million.

Overall revenue for the half, to February 28, was up 7.3% to $527.6 million, with expenses for its crucial television division up only 6.2%, to $284.8 million.

TEN said that higher revenue growth had lifted its margins to an ”industry-best” 36.6%.

TEN shares gave up early gains of as much as 5.4% to end the day down 0.9%, or 2 cents, to $2.20.

Executive chairman Nick Falloon said the network was in the midst of its strongest start to the TV ratings year since 2001.

”We’re number one in our target 18-49 (year old) demographic, enjoying significant audience growth on 2007 in all major audience groups and gaining revenue market share,” he said in a statement.

”We’ve achieved all this while also returning TEN’s operating margin to its customary industry-leader status.”

Depsite two investment banks, Goldman Sachs JBWere and Credit Suisse, recently reducing estimates for the domestic advertising market as a result of the worsening financial conditions, Mr Falloon said the market was currently proving to be ”remarkably resilient”.

”`As management predicted, TEN is gaining (advertising) market share and we expect to further improve on our record start in key buying demographics,” he said.

Mr Falloon did, however, concede TEN’s performance will depend on the success of Seven’s Olympic Games broadcasts and on the health of the ad market.

Source: Sydney Morning Herald