Bigger loss and lower revenue at Ten
Ten Network Holdings Ltd has posted a net loss of $280.9 million, well up on the $14.04 million loss in fiscal 2012.
Today’s announcement included details of a new four-year, $200 million debt facility backed by its major shareholders.
The net loss included one-off, non-recurring charges for continuing operations of $336.2 million, including a non-cash television impairment charge of $292.1 million.
Total revenue for the same period was $660.9 million, a big drop from $754.1 million in the previous year.
Ten declined to pay a dividend.
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The media group said the new debt facility was from Commonwealth Bank of Australia and was guaranteed by Ten’s major shareholders associated with Bruce Gordon, Lachlan Murdoch and James Packer.
The proposed Financing Facility will be free from financial covenants.
Chief executive officer Hamish McLennan said the network’s turnaround will be a long process, supported by its major shareholders.
“The Board and management of TEN recognise time and financial investment are required to build ratings and revenue, which is why a new Financing Facility is proposed,” McLennan said.
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“TEN’s management needs to focus on investing in its strategy to build ratings, while maintaining cost disciplines in other departments.
“Ten would not have been able to access this source of finance from CBA on such favourable terms without the support of our major shareholders who are providing guarantees,” he said.
The network’s television costs fell by eight per cent to $546.5 million, below the $560 million guidance offered in April.
“The strict cost control will continue, but we are investing in content that will appeal to our core target market of people aged 25 to 54, such as the XXII Olympic Winter Games in Sochi, Russia, the XX Commonwealth Games in Glasgow, Scotland, and the KFC T20 Big Bash League competition,” McLennan said.
He said the company’s results reflected the extent of the turnaround required in its core performance.
On September 30, TEN successfully tenplay, a website and app that is the first phase of the company’s TV Everywhere strategy.
“The focus on 25 to 54s, the investment in premium sport, the upcoming launch of our new breakfast and morning television line-up, the recent restructuring of our Sales department to better address client needs, and the introduction of tenplay are key elements in our strategy to improve TEN’s ratings, revenue and earnings,” McLennan said.
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