Ten confirms debt raising, says ad market worsening

Ten confirms debt raising, says ad market worsening
SHARE
THIS



Network Ten has confirmed a $230m capital raising to the Australian Securities Exchange (ASX), saying the cash will be used to pay down debt at the embattled broadcaster, ahead of its AGM today.

It is the second time the company has gone to the markets to raise money this year, with CEO James Warburton saying since it announced $12.9m losses in October the “advertising market conditions and Ten’s revenue performance have continued to deteriorate.”  

The network has suffered deteriorating ratings and associated loss of ad revenue during the year, and already cut dozens of jobs in newsrooms across the country in a bid to save cash.

Chairman Lachlan Murdoch added: “Poor execution of our spring programming schedule, compounded by a weak advertising market, has negatively impacted our results.

“The Board has taken additional steps to secure and build our business, including further reducing costs while improving our programming schedule.”

Under the terms of the new offer shares will be offered to investors at a heavily reduced 20c each, in a four-for-five offer, with an aim of leaving around $45m on the broadcaster’s books after it is complete and debt is relieved.

At today’s AGM Warburton will highlight a range of cost-saving measures, including improved rights content deals, and a better program development process to ensure a “more consistent” schedule for next year.

He will also flag an “improved media plan and marketing budget” to help promote shows, but admits the “ratings and revenue performance of the main Ten channel this year was clearly below our expectations and not good enough”.

He also reaffirmed the buzzwords used in the upfront presentations to “1,200” advertisers and media agencies, “consistency, stability, smart, different and authentic”.

Flagging a raft of new programming, and confirming MasterChef: The Professionals will air in the first part of 2013, he adds: “There’s no such thing as a sure bet in the television business.

“But we know there is no place for inertia and complacency. You have to listen, adapt and evolve. For next year, we have a clear, 40-week plan and a consistent, clearly targeted program schedule.”

Please login with linkedin to comment

Latest News

How To Create Connections To Increase Your Influence
  • Opinion

How To Create Connections To Increase Your Influence

Darren Fleming (pictured below) is a speaker, author and trainer who specialises in helping leaders influence their teams. He is the author of Don’t be a D!ck – creating connections that make influence happen. In this guest post, Fleming offers proven tips on how to improve staff connections and your influence around any office… The secret to […]

Opinion

by B&T Magazine

B&T Magazine
PayPal Unveils “Uncle Awesome” In Witty Christmas Spot Via Buzzman
  • Advertising
  • Campaigns

PayPal Unveils “Uncle Awesome” In Witty Christmas Spot Via Buzzman

A dodgy uncle is the star of PayPal’s new Christmas spot set to air across 15 european countries this festive season. The work of famed Parisian agency Buzzman, the ad plays on the traditional family Christmas and the arrival of an uncle notorious for his over-touching, cheating and over-eating. This time around, thanks to Paypal, Mr […]

Isentia Builds Out Executive Team With Three New Appointments
  • Media

Isentia Builds Out Executive Team With Three New Appointments

Isentia Group Limited has announced three senior appointments to its executive leadership team to accelerate product enhancement, operational efficiencies and support ongoing transformation. Following an extensive search, Paul Russell has been appointed chief technology officer (CTO), Kelly Young chief human resources officer (CHRO) and Peter McClelland chief financial officer (CFO). Ed Harrison, Isentia chief executive officer and managing director, […]

Ovarian Cancer Australia Says ‘It’s Time For Ovary-Action’
  • Campaigns
  • Media

Ovarian Cancer Australia Says ‘It’s Time For Ovary-Action’

Ovarian Cancer Australia has launched its first pieces of work via agency 10 feet tall. ‘It’s time for ovary-action’ is their empowering, new creative platform that aims to rally all Australians to stand up and take action for the cause. The launch includes a quirky content video accompanied by print and radio components that aim […]

Assembly Label Appoints The Wired Agency
  • Media

Assembly Label Appoints The Wired Agency

One of Australia’s leading fashion brands, Assembly Label has officially appointed The Wired Agency as its exclusive digital campaign partner. As a market leader in the ‘simplified essentials’ space; quickly becoming renowned for their minimal approach to design and clothing construction, Assembly Label has recently opened their tenth retail location as well as being well-represented […]