Ten promises static costs in '09

Australia’s Network Ten is expecting “zero cost growth” in its current financial year, despite a new channel launch, as the broadcaster watches revenues plummet.

Announcing a 12.1% drop in revenues for its TV business for the three months to end-October, Ten Holdings’ executive chairman Nick Falloon said that job cuts were “ongoing”. However, group EBITDA fell 25.2% to A$91.6 million.

“To ensure that Ten Holdings retains the flexibility required in this market, and to ensure we are well placed to benefit from an eventual upturn in the cycle, a comprehansive cost review has been conducted across the Group in recent months and the results of this review have been implemented,” said Falloon.

“The immediate positive impact of this cost review to the television business, Ten, is substantial. Notwithstanding the launch and ongoing commitment to our new multichannel One in early 2009, as well as deplyment of funds to new international and domestic program initiatives, Ten is expected to deliver zero cost growth for the full year.”

Revenue from the TV business was A$244.8 million, down 12.1%, although the company said that excluding the AFL Grand Final and the Rugby World Cup which occurred in the corresponding period in the previosu year, revenue was down just 5%.

Group revenue was down 10.6% at A$292.3 million.

Ten Network is majority-owned by CanWest.