Channel Ten reports of a turnaround, earns $150 million in fiscal 2010
Channel Ten owner Ten Network Holdings Ltd (ASX: TEN) appeared fully recovered from the net loss he suffered in the previous financial year as the broadcast company reported of a full year net profit due to spikes seen on its revenue.
Ten Network said on Thursday that company net profit soared to $150.007 million in the 12 months leading to end of August this year following the net loss of $89.35 million it incurred from the previous year while its group revenue surged by 10 percent to, with the television division chalking up revenues of up to 12 percent in the same period.
Company executive chairman Nick Falloon said that the turnaround can be attributed to streamlining measures implemented by Ten Network, which also "strengthen our content offering and maximise the effects of the rebound in the television advertising market."
Ten Network chief executive Grant Blackley added that the company attained more than 21 percent in advertising revenue growth as he stressed that due to a major programming overhaul, Channel Ten gained "an appealing, well balanced and consistent program schedule that achieved a strong performance in our key demographics."
The latest results were made public amidst spirited efforts by billionaire investor James Packer to obtain sufficient foothold in the company following his acquisition of up to 17.88 percent stake through his Consolidated Media Holdings Ltd.
Analysts were projecting that Mr Packer's moves were gearing towards radical changes in the network company that could witness the dumping of current program line-ups still deemed profitable by Channel Ten executives, basing on its newly-published financial results.
The network's digital channel offerings and sports programming could be scrapped in a James Packer-led Channel Ten, according to media analysts, despite of the rosy results for both segments, with Mr Blackley asserting that "ONE continues to make a profitable contribution to the network."
Along that line, Mr Falloon expressed confidence that Channel Ten would be able to sustain its impressive performance in the current financial year, thanks mostly to the television license free rebate, which he said would be re-injected as investments in the Australian broadcast sector.
The company board approved the issuance of an unfranked final dividend of six cents per share plus a one-off unfranked special dividend of five cents, which Channel Ten said was due to a tax refund receivable.
Incidentally, an imminent entry of Mr Packer in Channel Ten's board would not be too remote, according to analysts, judging from the amount of investments that he poured on the company so far as speculations grew that the investor is aiming to transform the network back into a high-yielding but low-cost free-to-air television, with a target audience age range of between 18 and 39 year olds.
As of 1247 AEDT on Thursday, Ten Network shares were trading up by 8.5 cents or 5.5 percent to $1.63, with analysts noting that Mr Packer purchased his shares at $1.50 each.