The share prices of Seven West Media, Nine Entertainment and Network Ten have all fallen significantly today, with Ten’s market capitalisation hitting a new record low.
Nine (ASX:NEC) shed 4.27 per cent to close at $1.35, Seven (ASX:SWM) was down 3.64 per cent to 79.5 cents, while Ten (ASX:TEN) saw a 3.81 per cent decline which saw its share price fall to a record low of $1.01, a 3.81 per cent decline, giving it a market capitalisation of just $367.41m.
Ten’s share price falls to a record low.
Overall the ASX was down 2.78 per cent today.
Ten’s drop comes despite the Free TV figures for last year showing the network had significantly increased its revenues on the back of improved audiences. Ten’s recently underwent a 10:1 consolidation of its shares following a significant investment from Foxtel. Under the previous structure Ten’s share price would now be $0.11, a record low.
Regional TV players Prime and Southern Cross Austereo fared a little better than their metropolitan brothers.
Prime Media (ASX:PRT), which has been one of the most vocal players on the need for media reform saw a 2.15% decline in its share price to 45c, while Southern Cross Austereo’s (ASX:SXL) share price actually rose 1.8% to $1.13 on the same day it announced a renewed its deal with the Australian Traffic Network.
The renewed $207m deal is a long term agreement which includes a $100m upfront cash payment to SCA along with recurring payments of $2.75m over the next 20 years, allowing ATN to sell ads around traffic bulletins it provides to SCA’s radio assets including the Hit Network and TripleM.
At the close of the ASX today, Seven West Media had a market capitalisation of $1.2bn, Nine had $1.18bn, Prime $166.6m and SCA $868.8m.
The share price fluctuations come at a time of intense market speculation around what impact expected changes to media ownership laws may have on the market, amid predictions it may spark a wave of media mergers and acquisitions.
Update 11am February 10: As of 10.30am this morning, the major TV networks have taken a further dive with Ten at $0.97, down 3.48 per cent, giving it a market capitalisation of $352.86m.
Seven West Media was down 2.91 per cent, to $0.767 and Nine was down 1.49 per cent to $1.32.