Broadcaster Ten Network has reported a 36.6 per cent drop in earnings for the year to date and said it would not pay a final dividend for fiscal 2009.

Ten reported earnings before interest, tax, depreciation and amortisation of $128 million for the nine months to May 31, 2009, down from $201.9 million in the prior corresponding period.

Revenue for the nine months dropped 12.6 per cent to $678.6 million.

Ten reported television revenue for the third quarter of $174.1 million, down 15 per cent on the prior corresponding quarter.

Ten said there will be no further dividend paid in fiscal 2009 due to the impact on current year earnings from the non-recurring items recognised in the first half result.

Ten paid an interim fully franked dividend of two cents per share on January 13.

Executive chairman Nick Falloon said the continuing difficult advertising market was the key factor that caused Ten's third quarter TV revenue to fall 15 per cent.

TV revenue was also affected by the market's perception that ratings would not improve over the prior year, despite Ten's new program initiatives.

Mr Falloon said shows such as MasterChef Australia, Talkin' 'bout Your Generation, Recruits and Merlin had demonstrated their worth.

"They are currently attracting considerable interest and investment," Mr Falloon said.

Ten's new sports channel, ONE, had also successfully launched and continued to improve on all critical measures including revenue and ratings, he said.

Mr Falloon said Ten remained focused on cash flow management and debt reduction, and expected that drawn bank debt would be about $600 million at the end of the financial year on August 31, 2009.

"Based on forecast debt levels, our strict cost control and our trading expectations for the final quarter, we remain of the view that Ten Holdings will be within the requirements of its banking covenants at the end of the financial year."

Ten's out-of-home advertising division, EYE, recorded revenue for the third quarter of $36.9 million, which was also 15 per cent less than the same period last year.

The broadcaster posted a first half net loss of $80 million, compared to a net profit of $270.5 million in the previous corresponding half, which was boosted by a fiscal 2008 $184 million tax gain.

The company's fiscal 2009 first half result included $138.4 million in writedowns related mainly to its outdoor advertising assets.

Ten, whose majority owner is Canadian media group Canwest, reported a net profit on a normalised basis of $56.8 million in the first half, down 34.6 per cent.

At 10.50am, Ten shares were off half a cent to $1.125.

AAP