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TEN 16.0¢

For any TEN holders........

  1. Yak

    13,672 Posts.

    Here's a downgrade from McQ

    "The broad US market tumbled to five-year lows overnight as
    a number of poor corporate earnings reports reduced hopes
    company profits were on the mend. Most surprising was a
    weak report from health products company Baxter
    International. This amongst others disappointed investors
    after the major indices had climbed a day earlier.
    The S&P 500 Index was down 24 points (2.7%) at 882 for its
    lowest close since June 1997. The Dow fell to its lowest close
    since September, dropping 133 points (1.6%), to 8,409. The
    Nasdaq Index was down 40 points (2.9%) at 1,357. The
    Nasdaq also is floundering near a five-year low.
    The gold and silver prices were largely unchanged, with a
    firmer US dollar dampening any buying interest.
    18-Jul +/- % chg
    S&P/ASX 200 3,152.3 30.1 0.96
    S&P/ASX 200 Industrials 5,345.0 29.1 0.55
    S&P/ASX 200 Resources 1,544.6 49.6 3.32
    Dow Jones 8,409.5 -133.0 -1.56
    S&P 500 881.6 -24.5 -2.70
    NASDAQ 1,357.0 -40.3 -2.88
    FTSE 100 4,297.3 106.7 2.55
    Hang Seng 10,452.6 117.4 1.14
    Nikkei 10,498.3 202.2 1.96
    Commodity Prices
    Aluminium (US$/tonne) 1,343.5 -17.5 -1.3
    Copper (US$/tonne) 1,595.0 -25.0 -1.5
    Lead (US$/tonne) 445.5 -6.0 -1.3
    Nickel (US$/tonne) 7,480.0 30.0 0.4
    Tin (US$/tonne) 4,490.0 40.0 0.9
    Zinc (US$/tonne) 810.5 -3.0 -0.4
    Gold (US$/oz) 317.7 1.5 0.5
    Silver (US$/oz) 5.0 0.0 0.0
    Oil WTI (US$/barrel) 27.7 0.2 0.5
    AUD/USD 0.5531 0.001 0.16
    AUD/STG 0.3515 0.000 0.03
    AUD/EURO 0.547 -0.001 -0.20
    AUD/NZD 1.1462 0.001 0.06

    Ten Network Holdings (TEN) $2.20

    Short term Hold, long term Buy, risk factor High

    Recommendation change

    Ten Network reported its third quarter result with TV
    cashflows coming in at $33.8m, up 22% on the previous
    corresponding period, on the back of TV revenue growth of
    This result was marginally below our expectations of $34.4m
    due to slightly higher cost growth.
    The most disappointing aspect of the result was Ten’s
    outdoor advertising business, Eye Corp, which posted an
    operating profit loss of -$3.3m, significantly below our
    forecast of -$1.8m.
    We understand that the market is growing at an underlying
    rate of around 3% which means that $20m of TV revenue
    growth in the quarter came from improved revenue share.
    Chairman, Nicholas Falloon, commented that that double-digit
    revenue growth that has continued since the end of May
    is positive and highlighted that Ten is continuing to
    outperform both Seven and Nine in revenue growth.
    The underlying growth in the TV market supports our view
    that the sector is currently outperforming both radio and
    newspapers and remains most leveraged to an increase in
    multinational spend in 2003.
    However, the due to the higher than expected TV cost
    growth, we have downgraded our 2002 full year TV operating
    profit by 2.3% to $154.5m and our 2003 forecast by 3.1% to
    Furthermore, the weaker than expected result from Eye Corp,
    means that we have downgraded to our full year 2002
    cashflows for this business from $6m to $3m.
    As a result of these downgrades our valuation has fallen from
    $2.46 per share to $2.42 per share. We have downgraded
    our short term recommendation to a Hold as we see more
    upside at this stage in PBL.
    While Ten will continue to report strong numbers over the
    coming 12 months, we think that this is captured in the
    current price.

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