UPDATE 1-Australia's Ten Network sees lower TV earnings

(Adds details)

SYDNEY, June 13 (Reuters) - Ten Network Holdings Ltd (TEN.AX), Australia's third-biggest television broadcaster, said on Friday deteriorating economic conditions would cut 2008 earnings from its television business by about 10 percent over the previous year.

Ten shares fell as much as 20 percent after it said poorer external economic conditions were affecting the tv advertising market in Australia, meaning that earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2008 would be about 10 percent below 2007's A$237 million ($2212.5 million).

It said EBITDA in the quarter ended May 31 rose 29 percent to A$38.2 million. Television unit EBITDA rose 20 percent in the quarter.

EYE, the company's out-of-home advertising division, achieved strong revenue growth in media sales on the prior corresponding period and was profitable with modest EBITDA growth on the prior corresponding period, Ten said.

In March, Ten had said the television advertising market had been resilient in the face of the turmoil on global credit markets, and that it was set to better 2007 EBITDA.

Ten targets the 18-49 age group with programmes such as musical talent search Australian Idol and reality show Big Brother, but lags rival Seven Network Ltd (SEV.AX) in overall ratings.

By 0052 GMT, its shares were off their lows, but still down 11.7 percent at A$1.74, having fallen as far as A$1.57. ($1=A$1.07) (Reporting by Jonathan Standing)