Ten shares have been battered as the network downgraded its earnings forecast, despite some ratings successes.
Ten says its television revenue will be about 3.5-4.5 per cent below the previous year, blaming volatility in the free-to-air metropolitan market.
The TV broadcaster warned of a slide in advertising revenues and higher costs as it prepared to close off its accounts for the 2013/14 financial year.
The network says that while its ratings have improved since the launch of Masterchef Australia and Offspring in mid April, the TV market remains volatile.
As a result, it expects its TV revenue will be 3.5-4.5 per cent lower in the 2013/14 financial year.
It also confirmed previous guidance of about an eight per cent rise in its TV costs.
However, one-off events including the Sochi Winter Olympics and the upcoming Glasgow Commonwealth Games will add another $55 million to Ten’s costs.
Ten says savings from its recent cost-cutting campaign will not benefit its earnings until the 2014/15 financial year.
“Ten remains firmly focused on improving ratings by managing costs to ensure that maximum funds are available for reinvestment in prime time content,” the broadcaster said on Thursday.
Ten made an $8 million loss in the first half of the 2013/14 financial year, which was a better result than the $243 million loss it announced 12 months earlier, due chiefly to one-off costs.
The network’s boss, Hamish McLennan, has been working to turn around the struggling network, battling poor ratings and a difficult advertising market.
The latest set back comes just weeks after the network announced it was slashing 150 jobs in its newsrooms, as well as the cancellation of its much-maligned breakfast show Wake Up.
The broadcaster’s shares have been punished on the market, falling nearly eight per cent to 26.7 cents by 1:35pm (AEST).