Despite a positive start to the year with So You Think You Can Dance and The Biggest Loser, Network TEN has today reported a 25% slump in earnings for 2007/08 financial year. But TEN lost steam with Big Brother.
The network signalled today it will still hold on Idol next year, ahead of its 2009 launch.
TEN said earnings at its television business fell 11.8% to $209 million, falling short of its own forecast in June, when it warned TV profits would be down about 10% because of the economic slowdown and Seven’s Olympics.
The broadcaster wouldn’t make a forecast for the current financial year, other than to say it was “prudently positioned” to weather the difficult economy and benefit when the market rebounds.
Executive chairman, Nick Falloon, said the network was confident it would “withstand the current contraction in the advertising market and position the company to take full advantage of eventual improvements in the external environment.”
He said the TV division achieved controlled cost growth (ex selling) of four per cent, which was well within previous guidance of five per cent growth for the year.
“This was achieved despite continued investment in key program franchises, including So You Think You Can Dance Australia, the rugby World Cup and new content from our US supply deals, as well as the launch of and on-going investment in TEN HD,” he said.
Its normalised profit dropped 24.7% to $89.6 million in the year to August. Adding a one-off tax gain of $183.9 million, its net income climbed from $66.1 million to $273.5 million.