WINNIPEG – Revenues and EBITDA at CanWest Global’s TEN Group Pty Limited (TEN), which owns CanWest’s Australian television and out-of-home advertising operations, reported consolidated revenues of A$956 million for the year ended August 31, 2005, an increase of 14% from the previous fiscal year.
TEN’s consolidated EBITDA of A$342 million grew by 19% compared to the A$287 million for the previous fiscal year. CanWest holds a 56.4% economic interest in TEN.
TEN’s television operations recorded 16% growth in EBITDA to A$316 million for the year from A$272 million F2004, on an 11% revenue increase to A$839 million. Eye Corp, TEN’s out-of-home advertising business, generated a 74% increase in EBITDA to $26 million for F2005, compared to A$15 million in the prior year.
Revenues at Eye Corp grew to A$117 million for the year, a 46% increase from revenues of A$80 million in the previous year.
For the quarter ended August 31, 2005, TEN reported a 9% gain in consolidated revenue to A$232 million from A$211 million for the fourth quarter last year. Consolidated EBITDA for the fourth quarter increased by 3% to A$73 million compared to A$71 million for the fourth quarter of fiscal 2004.
This year’s results mark the continuation of a pattern as TEN has already seen two consecutive years of previous records in revenues and EBITDA.
"TEN has not only outstripped its rivals to remain Australia’s most profitable television business," said Tom Strike, president, CanWest MediaWorks International, in the press release, "but has also expanded its share of the metropolitan television advertising market to 31% at the expense of its rival networks."
Nick Falloon, TEN’s executive chairman, added that TEN has also increased its lead as the most profitable of Australia’s television broadcasters “by means of its relentless focus on containing operating costs, while also making strategic programming investments.
“This was a very competitive year in Australian television," said Falloon. "But TEN’s strategy of consistently providing programming that delivers its target demographic of 16 to 39 year old Australians, paid off once again, winning the ratings battle for its target demographic for the fifth straight year.
"TEN is currently in the tightest ratings race for the broader 16 to 54 year old category since the introduction of people meters into Australia in 1991," he continued. "Only a few percentage points separate the three commercial television networks for the overall top spot."
TEN’s ‘big event’ television programs, such as Australian Idol, Big Brother and the Australian Football League, continue to drive viewers to the network, but domestic programs such as Rove Live and Neighbours, along with hit shows such The Simpsons, The OC, Law & Order, House and Numb3rs, are all part of the mix.
However, softer times are ahead.
"2005 has been a tremendous financial year for TEN and we expect that it will maintain its leading financial performance in the Australian television and out-of-home advertising sectors,” said Falloon. “There has been some softening and shortening in the Australian advertising market since the end of the financial year, and as a consequence TEN does not expect in its first quarter of F2006 the record levels of revenues and EBITDA achieved in the first quarter of F2005. It is important to remember that the first quarter has in the past several years reported the most year-on-year growth, and therefore the comparables are the most challenging for this quarter."
The Turin Winter Olympic Games and the Melbourne Commonwealth Games, both to be broadcast on rival networks early in calendar 2006, will also have some temporary impact on regular viewing patterns.
