the age

anWest tips improved performance from Ten Network
Email Print Normal font Large font Helen Westerman
January 12, 2007

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AdvertisementTEN Network's Canadian owner, CanWest, is predicting an increase in the network's revenue this year from an improvement in Australia's advertising market.

CanWest chief executive Leonard Asper has also denied speculation that the company's offer to sell the group's 56.4 per cent economic stake in the television network was connected to financing CanWest's $C2.3 billion ($A2.5 billion) acquisition of a Canadian TV group.

Unveiling a doubling in group profit to $C66.4 million in first-quarter results, Mr Asper said Ten's earnings for the three months ending November 30 were down from the same quarter a year earlier.

However, he expected "significant" revenue growth at Ten in November and December to persist.

"We've got continued strong ratings there and a market turnaround is now starting to appear that should grow revenue and see EBITDA (earnings before interest, tax, depreciation and amortisation) improvements in the coming quarters," he told analysts.

Mr Asper's comments echoed Ten executive chairman Nick Falloon, who said in December there were signs of improvement after a 15.6 per cent drop in first-quarter earnings to $A107.2 million.

A Ten spokeswoman was unavailable for comment yesterday.

Media buyer emitch chairman Harold Mitchell has also predicted an advertising upturn for 2007, saying he expects forecasts of up to 7 per cent advertising growth to be borne out.

Mr Asper rejected suggestions that CanWest needed to sell its Ten stake, valued at $A2 billion, to buy Canadian specialty TV network Atlantis Alliance Communications in partnership with merchant bank Goldman Sachs. CanWest is considering whether to sell its stake in the shake-up of Australia's media assets after restrictions on cross-media and foreign ownership are lifted. But analysts believe a sale is the most likely outcome.

"Our view is that CanWest is still a seller of Ten," said UBS media analyst Nola Hodgson.