Ten board grilled by angry shareholders as AGM approves $200m loan
McLennan
Network Ten’s directors faced harsh questions and heckling from shareholders in today’s Annual General Meeting as members questioned the ability of the network to drive revenue and improve declining ratings, before approving a new $200m loan.
Ten Network chairman Lachlan Murdoch opened the AGM with a speech that included a call on the government to be holistic in setting its upcoming media reforms, and as he did so a shareholder shouted out: “I don’t think you should be lecturing the government here.”
CEO Hamish McLennan admitted Ten’s ratings had been unacceptable in 2013, but said since its focus had shifted from 16-39s to 25-54s it had seen improvements and advertising had stabilised in recent months.
McLennan said the focus would be on ratings, revenue and return to shareholders in 2014.
However his commitment to the struggling network, which ranked fourth behind the ABC in the ratings this year, was called into question by Alan Golden, of the Australian Shareholders Association, who said McLennan should resign from his role as chairman of the real estate REA Group to focus on a turnaround at Ten.
However, Murdoch gave his support for McLennan who said the CEO’s focus has been “Herculean” since joining the network in March following the sacking of former CEO James Warburton.
“Neither I nor the board has seen a lack of commitment or time or focus on the business of Network Ten,” Murdoch said.
Murdoch was also asked about his own commitment to the Ten board, given his involvement on the boards of News Corp and Fox.
Shareholders also fired direct questions at board members seeking re-election and about the $200m financing facility guaranteed by its three major shareholders.
The new $200m loan backed by Ten’s three biggest shareholders – Bruce Gordon, Lachlan Murdoch and James Packer – was approved by shareholders who overwhelmingly agreed the “covenant light” loan was the best option for the struggling network with approval from 95 per cent of shareholders before the paper vote was taken into account.
Megan Reynolds
Perhaps if Murdoch Junior had an holistic approach to his network rather than using screen time to broadcast political messages, the network would be in a healthier position. The blatant disregard for viewer’s intelligence & enjoyment has come at a price but it’s very doubtful that Junior will heed the lesson.
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Hamish can be rightly accused of many things, but not working hard enough isn’t one of them
ratings were unacceptable in … 2014? Is that a prediction by LM or a Freudian slip?
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“CEO Hamish McLennan admitted Ten’s ratings had been unacceptable in 2014”
Bit harsh Hamish! It hasn’t even started yet!!!!
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There’s your problem right there Ten – your priorities are to the viewers, you remember them. They’re the annoying people for whom your existence solely relies on! You know the ones who buy the products your advertisers peddle their crap to!
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Murdoch needs to take a long hard look at himself. He was the architect of TEN’s failure and it’s still languishing as a result.
It’s success requires only two things – content and respect for the viewer.
C’mon TEN and get it together.
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I wonder if the executive team had an AGM de-brief on Lachlan’s shiny new boat.
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In January when the audited revenue figures come out for the 6 months ended December 31 let’s see where 10 sit. There should be a correlation between their key audience demographic in ratings and revenue written. 7 have been around the 40 mark for quite a while, 9 have improved significantly from early – mid thirties and the “mail” is they will get high 30’s so that leaves 10 with maybe 21.5- 22.0. If that was to be accurate watch the share price then?
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this historical information is available on Free TV site just for the record
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TEN lost the plot years ago. You are talking about a network whose idea of quality programming is to wedge a tired old cartoon series in between their news and current affairs program each night. How can anybody take them seriously?
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Ten continually feels like the “apologising sportsman” – each year we here Chairman Lachlan apologise and tell us the next year will be better.
Lets see what 2014 holds – better or even worse ?
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It’s like lending money to Greece
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At least you’d get some ouzo and few broken plates for your money
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