Ten share price hits all time low as company value falls below $200m

The share market value of Ten fell to the lowest in its history on Thursday, taking the troubled TV network to a market capitalisation below $200m for the first time.


The TV network’s share price has been dropping steadily since late last year. Six months ago, shares were priced at $1.47. On Thursday they fell to 52c for the first time, giving the company a valuation of just $188m, only a third of six months ago.

Ten’s share price dropped from $1.47 in October to 52c on Thursday. Source: Google Finance

Yesterday, Ten told the ASX that it will update the market in a fortnight’s time on the state of its finances, with its results for the six months up to the end of February released on April 27.

However, an additional clue will come next week when Standard Media Index releases its data for adspend in March. Last month SMI said that in February spending on television advertising was down 6% year-on-year.

In February, Ten warned the market that declines in advertising revenues meant the company was unprofitable and that by the end of its financial year in August it may have made losses of $20m-30m

Recent weeks have seen a drastic decline in Ten’s ratings fortunes thanks to the failure to find an audience for The Biggest Loser Transformed, which was eventually bumped to a lunchtime slot.

Critically, a $200m loan facility with CommBank expires on December 23, with no obvious sign of how Ten will meet this liability.

One potential bright spot for Ten is that its ratings are likely to stage something of a recovery after Easter when the popular Masterchef returns to its schedule.

April 18 update: In the first few minutes of post-Easter trading, Ten’s share price fell a further 2% to 51c, taking its market capitalisation down to $186m.


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