Ten Network chief executive James Warburton says the broadcaster’s ratings performance has been not good enough after reporting a full year loss amid double-digit declines in revenue.

The broadcaster and outdoor advertising company reported a net loss of $12.9 million for the 12 months to August 31, 2012, compared with net profit of $14.2 million in the prior corresponding period.

The post-tax loss is due to a 14 per cent decline in revenue from ordinary activities, while television earnings before interest, tax and amortisation dropped from $154.1 million to $82.4 million. 

Despite the gloomy news, Ten's shares are up 1 cent, or 3.2 per cent, to 32 cents in recent trade after falling to an all-time intra-day low of 30 cents yesterday.

Ten has struggled in the ratings so far in calendar 2012, with shows such as Everybody Dance Now - hosted by Ten director Lachlan Murdoch’s wife Sarah Murdoch - The Shire and I Will Survive failing to fire.

‘‘It’s no secret to anyone that we have had a very tough time in terms of our ratings performance after the Olympic Games,’’ Mr Warburton said during a conference call. ‘‘Our performance was simply not good enough and we have experienced disappointment with new programs.

‘‘Undoubtedly, we are operating in challenging market and competitive conditions, which have impacted our revenue performance.’’

The most recent figures from industry body FreeTV Australia show Ten captured 25.5 per cent of the capital city television advertising market in the six months to June 30, 2012, well behind Seven’s 40 per cent and Nine’s 34.5 per cent.

Analysts expect Ten’s share to decline in the period ahead given a perceived lack of hit shows in the pipeline for 2013.

Ten’s television network, which generates the bulk of earnings, suffered a 14.5 per cent fall in revenue amid soft ratings.

‘‘We are focused on turning Ten around through improved ratings, revenue and cost management,’’ Mr Warburton said.

Ten will not pay a final dividend after paying a 52.5 cent dividend last November.

Ten’s non-current liabilities dropped from $615 million to $290 million after it raised $200 million from shareholders to repay debt. However, Ten is still carrying $732 million of liabilities. 

It was expecting to get a further $120 million from the sale of its outdoor advertising arm EYE Corp, but this deal collapsed yesterday when oOh!Media’s owners, OMO, announced it was backing out of the sale. Ten says it is still in discussions to sell the subsidiary. 

"While the company has reserved its legal position regarding the purported termination, [Ten] and OMO remain in discussions with the aim of agreeing amended sale terms,’’ the financial report states.

The sale process has cost Ten $12.3 million and this was written off during the period. 

He said many of Ten’s core programs had performed well, ‘‘underpinning our confidence that our performance can be improved’’.

Ten said it had reduced television costs (excluding selling costs) by 6.6 per cent in fiscal 2012, better than its five per cent target given in April 2012. The company said that, as a result of the review, it had reduced guidance for television cost growth for fiscal 2013 to less than the consumer price index, from the mid to high single digits previously.

Ten said the reported net loss was affected by $23.7 million in non-recurring costs, including redundancy costs, impairment charges on its outdoor advertising business and writedowns on its investment in OurDeal Pty Ltd.

Ten’s television network, which generates the bulk of earnings, suffered a 14.5 per cent fall in revenue amid soft ratings.

‘‘While our overall ratings performance this year has not been good enough, we are working hard on improving it,’’ Mr Warburton said.

‘‘Next week, we will start a series of presentations to advertisers and media agencies around the country to showcase our 2013 programming strategy and plans.’’

An investor conference call is due this morning.

with AAP