Ten struggles to please
Recommendation
Net profit after tax and minorities was $54.0m, on revenues of $564m. A final dividend of 14.4 cents per share has been declared - the only one for the year. Comparisons with 1998 really can't be made because the present ownership structure at Ten was only put together last year, but it's clear it's been a slow year for Channel Ten. The listed company (Ten Network Holdings) has a 41.2% 'economic interest' in Ten Group, which owns the stations.
Struggles to make ammends
The company managed to lift advertising revenue by a mere 1.5% over the period - peanuts when you consider that economic growth in Australia is a little over 4% at the moment. Things weren't any better on the cost front either with total expenses rising by just 1.5%.
The company may be doing better this year than last but it needs to get a decent Internet presence to compete with the other networks. It has just formed a partnership with Village Roadshow to create an Australian entertainment and leisure site but more needs to be done to re-ignite sales growth and cut costs. Until this happens, TEN won't offer too much in the way of shareholder appeal. HOLD until further notice.