UPDATE 1-Australia TV firm Ten says Q3 revenue falls 15 pct
* Q3 revenue falls 15 pct
* To remain within banking covenants
* No further dividends in FY09 (Adds details)
SYDNEY, June 24 (Reuters) - Australian TV broadcaster Ten Network Holdings Ltd (TEN.AX) reported a 15 percent drop in third-quarter revenues on Wednesday but sought to reassure investors it would stay within its banking covenants.
Ten, a unit of Canada's CanWest Global Communication Corp CGS.TO, said advertising markets remained challenging and it confirmed it would not pay any further dividend in the current fiscal year after writing down assets in the previous quarter.
Australia's third-biggest network did not give a figure for its third-quarter revenue in its trading update. A year ago, it made third-quarter group revenue of A$250 million ($200 million).
Ten said on Wednesday its earnings before interest, tax, depreciation and amortisation for the nine months ended May fell 36.6 percent to A$128 million.
"Based on forecast debt levels...we remain of the view that Ten Holdings will be within the requirements of its banking covenants at the end of the financial year," Executive Chairman Nick Falloon said in a statement.
Ten expects its total bank debt to be about A$600 million as of Aug. 31. Earlier this year, Ten scrapped plans to raise capital due to depressed market conditions.
A slowing Australian economy has forced many Australian companies to slash their advertisement budgets, which has severly hurt profitability of broadcasters.
Ten shares were down 0.4 percent at A$1.125, having fallen around 4 percent so far in 2009, compared with about a 2 percent rise in the benchmark S&P/ASX 200 index .AXJO.
Ten shares are also under pressure due to its parent's debt problems and there has been constant speculation that CanWest will cut its holding in Ten to pay down some of its debt. ($1=A$1.26) (Reporting by Denny Thomas; Editing by Mark Bendeich)
