Network Ten announces 70% profit dive

Ten Network Holdings (ASX: TEN) has announced a 70.1% profit dive for the six months to March.

The media group posted a net profit of $14.81 million – despite a 10.9% rise in revenues to $432.8 million. The company will not pay an interim dividend.

Network Ten CEO James Warburton says the Australian television advertising market remained “short”, with limited forward bookings.

“While visibility remains limited, we expect to see less volatility in advertising markets over the next few months and the emergence of a more consistent trend, ” Warburton says. “Advertising markets were soft, particularly in late 2011 and early 2012.”

Warburton says base costs have been reduced, with the company’s focus returning to ratings and revenue.

“We are making good progress on both fronts, but the full benefits of the turnaround will take some time to filter through to results.”