Net 10 still most profitable in Oz

TV operator's profits down from last year with $35.4 mil

By PHILLIPPE CAHILL

SYDNEY -- Third-ranked Oz broadcaster Network 10 remains the nation's leanest, most profitable and tightly managed free-to-air TV operator, despite reporting a slight drop in profits Thursday, down from last year's $A56.1 million ($36.8 million) to $A54 million ($35.4 million) for the 12 months to Aug. 31.

Although the net suffered a ratings drop over the past year, largely coinciding with the decline and demise of much of its hit U.S. programming, such as "Seinfeld," "Mad About You" and "Melrose Place," the network still managed a record sales year with overall revenues before interest and tax pushing $118 million.

Targeting demos

Philosophical execs maintained the network would be continuing its focus as the Oz market leader in youth niche-targeted broadcasting. They prefer to deliver efficiently to advertisers a hefty slice of the 16-39 demographic at a competitive price, rather than enter a costly head-to-head ratings battle with the top-ranked Nine and No. 2 Seven networks.

As more trademark Ten Network U.S. hits like "The Simpsons" come to an end, however, along with its programming supply agreements with Universal and WorldVision (who distribute Aaron Spelling product), execs said the network would be looking to boost its levels of locally produced content. Two sitcoms are in development, due for delivery by the end of the year.