Ten Network Holdings Limited (TEN) reported a 36.6% drop in EBITDA for the nine months to 31 May 2009. The company said the negative impact of the difficult advertising market was the key factor behind a fall in revenue.

The company's EBITDA for the period was $128 million, compared to $201.9 million recorded the previous year.

Ten said its revenue of $678.6 million as of the same date was down 12.6% on the previous correcponding period, which included a 15% decline in the third quater alone.

Executive chairman Nick Falloon added that television revenue had been affected by the market's perception that ratings would not improve over the prior year despite several new programs demonstrating their worth having attracted considerable interest recently.

"Our new digital multi-channel ONE has also successfully launched and continues to improve on all critical measures including revenue and ratings,” Mr Falloon said.

"Our ratings momentum, the absence of the Olympics and greater buyer interest in TEN and ONE will benefit our final quarter for fiscal 2009 and beyond.”

The company reaffirmed its full year TV cost guidance to be below that of 2008, with Ten remaining focused on cash flow management and debt reduction.

As a result, Ten expects that drawn bank debt would be about $600 million at the end of the financial year on 31 August 2009.

The company remains of the view that it would be within the requirements of its banking covenants at the end of the financial year.

At 1300 AEST, Ten shares were down 1c to $1.12.