WINNIPEG – Canwest Global’s Ten Network Holdings suffered through the effects of the Summer Olympics and a soft economy in the fourth quarter, the company announced Wednesday.
The division owns and operates the TEN Television Network in Australia and EYE, a multi-national out-of-home advertising business. Canwest owns approximately 56% of Ten Holdings.
For the fiscal year ended August 31 2008 Ten Holdings reported consolidated revenues of A$1 billion and consolidated EBITDA of A$215.0 million, in line with what was previously indicated in the third quarter. These annual fiscal results represent an increase in consolidated revenues of 1% and a decrease in consolidated EBITDA of 10% compared to normalized annual results of the last fiscal year.
Normalized results for 2007 exclude an A$8.9 million one-time gain from EYE’s sale of its investment in Big Tree Outdoor Malaysia reported last year in its revenue and EBITDA results.
Ten Holdings reported fiscal 2008 fourth quarter consolidated results of A$227.3 million in revenue and EBITDA of A$13.1 million. These results represent decreases in consolidated revenues of 17% and consolidated EBITDA of 79% compared to fourth quarter fiscal results last year.
The fourth quarter results reflect the impact of the sharp deterioration of the advertising market, as reported in June, and the impact of the Beijing Olympic Games. For the first nine months of fiscal 2008, TEN Television had an excellent earnings performance, with EBITDA growth of 13% achieved on 7% revenue growth, says the company.
"The results demonstrate the underlying strengths of the businesses, despite the deterioration in trading conditions in the final quarter of the year that ultimately impacted the bottom line," Ten Holdings’ executive chairman, Nick Falloon said in the release.
"Ten Holdings has a strong balance sheet and is conservatively geared. Its business units strictly observe the operational and financial disciplines that have established Ten Holdings as a leading Australian media business.”
