Network Ten reports $285m loss and calls for $200m loan to rebuild
The extent of Network Ten’s financial woes has been revealed in its end of year financial results listed on the ASX this morning with the company declaring a large tax loss and revealing proposals for a new $200m loan over four years.
Network Ten Holdings’ reported a loss of $285m in the 12 months to August 31. Although the company declared an operating profit of $46.1m, it declared one-off charges including a $292m writedown on the value of its licence and costs involved in making redundancies and restructures.
Excluding businesses such as outdoor company Eye which has since been sold off, revenues fell from $751m to $653m. This number was actually a slight improvement on what the market had anticipated after heavy government and political spending in the run-up to the election increased ad spend across the TV industry.
Ten revealed that its three biggest shareholders – Bruce Gordon, chairman Lachlan Murdoch and James Packer – have guaranteed a proposed $200m financing facility from the Commonwealth Bank of Australia that will be delivered over four years.
A shocking result – once again. Fewer viewers, failed program choices, less revenue and bad management.
Now they want to fund new initiatives from debt…well the debt will last long after another failed venture or slate of programming leaving a shell of a company.
Could they produce a reality TV show based around a once-great TV station that is no longer relevant?
They could call it:
– 1 out of 10
– Desperate in Pyrmont
– Tens Anatomy
– Breaking 10
– Australian Horror Story
– The Walking Dead (already taken though)
– Ten Feet Under
– Curb Your Profits
Is there anybody out there willing to buy these guys out before the network falls into a heap? Ten really needs a tough, seasoned but creative CEO with reams of TV experience to pull them out of this. But would these major shareholders allow it particularly when not only are they staring at huge losses on their shares but also guarantees on their loans.
Cue Voice Over Man …. TEN, the network that turned its call-sign into its viewing share.
Perhaps Ten could produce a fly on the wall documentary set at Board meetings. It would be called Wonderland.
It looks like the A-Team is getting a grasp of the issue…“Ten’s management needs to focus on investing in its strategy to build ratings, while maintaining cost disciplines in other departments,” Sir Humphrey McLennan pure genius, what a visionary!!
TV is dead. Ten was just the first casualty
Gee looks like all the arm chair trolls are out – have any of you even come close to running a business. Go back to the water coolers!