Ad Surge at Ten Network Raises Hopes for Aussie TV Market

05 December 2003

Shares in Australia's TV broadcasters rose this week after Ten Network posted double-digit ad growth for its fiscal first quarter.

Ten reported a 20% surge in television advertising revenues for the three months to November -- traditionally its strongest quarter. As a result, earnings before interest, depreciation and amortisation jumped 37%.

Ten responded by raising its planned dividend for the year to A$0.095 ($0.07; €0,06; £0.04), up from A$0.08 before.

The news pushed its shares up 6 cents to A$2.84, and there were also gains for rival TV firms Seven Network and Publishing & Broadcasting.

However, Ten does not believe the Q1 surge in ad revenues can be sustained. It is forecasting full-year advertising growth of 4% to 5% across the whole television sector, lower than other predictions in the industry of up to 9%.

Data sourced from: Sydney Morning Herald; additional content by WARC staff