Network Ten Report- Revenue and Funding

Unlike ABC who are funded by the Federal Government, Network Ten is funded almost entirely by advertising. 80% of the revenue comes from multinational advertisers others come from audience shares and the market. This allows them to be more independent to what they air and aren't restricted by the Federal Government and politics allowing them to show programmes that are more entertaining to the target audiences. Though this independence is good if the market crashes or the advertisers can not sponsor Ten Holdings will be in a mass of trouble as they have no secure funding like the Federal Government can offer. The target audiences would most likely influence this decision on whom they would be funded from as mentioned  in the aforementioned. Their guidelines would express the values of the company and what they seek that their company would portray than the others. These guidelines are their to help guide decisions based on the company so that they have some sort of organisational concepts rather than everything is spontaneously thought of. What the company wants to portray decides on what programmes they would want to broadcast. 2011 Financial Highlights (half year) • Group Revenue of $484.2 million, up 2.2% • Television EBITDA of $95.0 million, down 13.4% • Out-of-Home EBITDA of $11.0 million, up 40.8% • Group EBITDA (pre Non-Recurring Items) of $106.0 million, down 9.8% • Non-Recurring charge of $7.1 million relating to Television restructuring costs • Net Profit Attributable to Members of $49.5 million, down 15.6% 2  2010 Financial Highlights       Group revenue $991.5m ↑ 10%       Group earnings before interest, tax, depreciation and amortisation (EBITDA) $208.1m ↑ 38% ·         Television revenue $833.4m ↑ 12% ·         Television EBITDA $194.2m ↑ 37% ·         Television normalised cost growth managed to approximately 3% ·         Out-of-Home revenue $158.1m (2009: $158.1m) ·         Out-of-Home EBITDA $15.0m ↑ 48% ·         Out-of-Home cost management contributing to the improved performance ·         Reported Group net profit after tax (NPAT) $150.0m (2009: ($89.4m)) ·         Underlying Group NPAT $96.9m ↑ 105% ·         Final Dividend: 6 cents per share (unfranked) ·         Special Dividend: 5 cents per share (unfranked) ·       Peer Comparison P/E (x) EPS Change (%) Dividend Yield (%) Company Code Last Price Mkt Cap 07A 08F 07A 08F 07A 08F Seven Group Holdings Limited SVW $7.72 $2,365M 10.1000 9.1000 610.2000 11.0000 4.7000 5.2000 Consolidated Media Holdings CMJ $2.28 $1,281M 14.3000 13.3000 11.2000 8.2000 7.2000 7.5000 Ten Network TEN $0.92 $962M 9.0000 7.5000 9.7000 19.6000 7.6000 9.8000 Southern Cross Media Group SXL $1.21 $854M 8.2000 7.4000 38.3000 10.1000 9.9000 11.6000 Prime Media Group PRT $0.67 $245M n/a n/a n/a n/a n/a n/a Share Price Returns 3 Months (%) 6 Months (%) 12 Months (%) TEN -28.1300 -35.4300 -27.7200 Sector n/a n/a n/a Market -12.4136 -15.8826 -7.7958