Channel Ten have announced a massive decline in both their annual normalised net profit and in the networks group earnings before interest, tax, depreciation and amortisation (EBITDA). The latter fell 11.8% to $209 million for the year ended August 31, 2008.

Harold Mitchell of Mitchell Communications Group rejected the networks revised projected revenues in June, but it appears that his own predictions were the ones that needed revising.

The decline in earnings was offset by the inclusion of a one-off $184 million tax credit from the first half of 2008, but the results were as executive chairman Nick Falloon had expected.

“We are confident the sensible strategies, promising initiatives and
flexible infrastructure in place will see Ten Holdings withstand the
current contraction in the advertising market and position the company
to take full advantage of eventual improvements in the external
environment.”

Weve been reporting on the troubled times for TV for a while here at marketingmag.com.au, and the industry is not likely to be too surprised by todays results. As the economy continues to contract, theres every chance that the other networks will be forced to follow suit and revise their earnings.

Channel Sevens Olympic coverage may well boost their figures for this year, but this will probably only be a temporary fix, as the long-term trends in both free-to-air and subscription television seem to suggest that the times when TV could take the biggest slice of marketers spend are numbered.

For more commentary and analysis on the state of TV advertising revenues in Australia, check out these articles:

• Poll results: Are the tables turning on TV?
• STV drives growth in TV audience
• BTalk podcast: Phil Dobbie chats to Scott about the decline of television advertising

And dont miss out on the next issue of Marketing, when Scott Drummond will be looking at the future of the 30-second TVC as an advertising model. Pick up your copy on 29th October from all good newsagents.