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Ten Network reports full year loss of $13m


Ten Network Holdings chief executive James Warburton says the broadcaster's ratings performance has been not good enough after reporting a full year loss amid double-digit declines in revenue.

The broadcaster and outdoor advertising company reported a net loss of $12.9 million for the 12 months to August 31, 2012, compared with net profit of $14.2 million in the prior corresponding period.

Ten on Thursday said the fiscal 2012 net loss was affected by $23.7 million in non-recurring costs, including redundancy costs, impairment charges on its outdoor advertising business and writedowns on its investment in OurDeal Pty Ltd.

Revenue declined 13.7 per cent to $861.8 million, Ten said in a statement.

Ten shares were up in early trade on Thursday, having risen one cent, or 3.23 per cent, to 32 cents by 1044 AEDT.

Ten has struggled in the ratings so far in calendar 2012, with shows such as Everybody Dance Now - hosted by Ten director Lachlan Murdoch's wife Sarah Murdoch - The Shire and I Will Survive failing to fire.

"It's no secret to anyone that we have had a very tough time in terms of our ratings performance after the Olympic Games," Mr Warburton said during a conference call on Thursday.

"Our performance was simply not good enough and we have experienced disappointment with new programs.

"Undoubtedly, we are operating in challenging market and competitive conditions, which have impacted our revenue performance."

The most recent figures from industry body FreeTV Australia show Ten captured 25.5 per cent of the capital city television advertising market in the six months to June 30, 2012, well behind Seven's 40 per cent and Nine's 34.5 per cent.

Analysts expect Ten's share to decline in the period ahead given a perceived lack of hit shows in the pipeline for 2013.

Ten's television network, which generates the bulk of earnings, suffered a 14.5 per cent fall in revenue amid soft ratings.

Mr Warburton said the company's strategic, operating and news review aimed at further reducing costs, which was announced earlier in 2012, was ongoing.

No final dividend was declared.