Is This The End For Channel Ten? As Beleaguered Broadcaster Announces Huge $232 Million Loss

Is This The End For Channel Ten? As Beleaguered Broadcaster Announces Huge $232 Million Loss
SHARE
THIS



Beleaguered broadcaster Channel Ten has this morning announced a 2.5 per cent decline in revenue to $340 million taking the loss for the first half of 2016-17 to $232 million, with some even questioning if the broadcaster can survive.

The problem for Ten was an an impairment on its television licence which blew the loss out from $2.4 million to $232 million.

The loss was in line with a profit warning issued by management in February.

It has been reported that the shortfalls have had to be made up by the network’s major shareholders including billionaires Bruce Gordon, Gina Rinehart and James Packer, as well as stakeholder Foxtel and News’ Lachlan Murdoch.

The broadcaster has a $200 million loan facility with the Commonwealth Bank which is guaranteed by its billionaire shareholders. However, that’s due to expire in December this year and there’s no guarantee that will continue, putting the network’s future under a real cloud.

In February, Ten’s CEO Paul Anderson said the free-to-air TV business was under “under severe duress” borne from a tepid ad market, rising costs at the network and hefty license fees.

Auditors PricewaterhouseCoopers noted Ten is trying to secure new funding and said in a recent report: “The consolidated entity is reliant on the provision of sufficient further guarantees by shareholder guarantors and/or new financiers.

“These conditions, along with other matters set forth…indicate that a material uncertainty exists that may cast significant doubt on the consolidated entity’s ability to continue as a going concern.”

The broadcaster said a 2.7 per cent metropolitan ad market share gain had not been enough to offset the weak conditions in the ad market and the increased costs of making content. This was “not enough to offset the weak conditions in the television advertising market and the Company’s increased content and other costs,” Anderson said this morning.

The network has placed its faith in the reality genre in recent times with shows such as MasterChef, The Bachelor, The Bachelorette, Survivor and I’m A Celebrity Get Me Out Of Here the staple of its programming.

However, MasterChef aside, most of the programs have seen diminished audience numbers in recent times culminating in the disaster that was this year’s The Biggest Loser that had to be dropped from its prime time slot as audiences fell below 250,000.

“Ten has commenced a transformation program to improve all aspects of the business,” Anderson said.

“Despite The Biggest Loser: Transformed not performing, our investment in local content continues to build a strong platform, with Australian Survivor, the KFC Big Bash League and I’m A Celebrity…Get Me Out of Here! performing very well for the network.”

Please login with linkedin to comment

Latest News

Shell & HSBC Launch Global Agency Reviews
  • Advertising
  • Media

Shell & HSBC Launch Global Agency Reviews

Going with ‘new year, new me’ theme, Shell and HSBC are looking to freshen up their respective media businesses.

by B&T Magazine

B&T Magazine
Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group
  • Marketing

Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group

Marketing events group Comexposium has absorbed its New Zealand joint venture partner MTS to deliver an expanded event solutions business across the Trans-Tasman. The deal will see Ryf Quail (pictured above) return to Sydney to lead Comexposium Australian and Kiwi team, while his current MTS team remains in place as Comexposium employees. While the business […]

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding
  • Marketing

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding

Audience data provider Eyeota has announced a $15.6 million Series B capital raise to spearhead additional growth in 2018. The company was founded simultaneously in Singapore, Australia and Europe in 2010, and has remained independent and enjoyed strong growth locally, as well as launching into the US. Peter Hunter (pictured above), Eyeota’s general manager for […]

Poem Wins Four New Clients
  • Marketing

Poem Wins Four New Clients

Sydney-based PR and social agency Poem has announced it has won four new clients following another strong year of growth. The four clients are Property NSW (The Rocks and Darling Harbour), Fantastic Furniture, Ovolo Hotels and Purpose (a conference on purpose-driven business). Poem co-founder Matt Holmes said: “We’ve hit a nerve with clients who are […]

Facebook Makes Another News Feed Change
  • Media

Facebook Makes Another News Feed Change

Social media behemoth Facebook has announced its second major update for News Feed to make sure the news people see, while less overall, is high quality. This week, Facebook announced that the platform will launch a small test in the US focused on prioritising news from publishers that users find trustworthy. Facebook is also exploring ways […]

Attention! B&T’s Inaugural Bootcamp Launches!
  • Advertising
  • Marketing
  • Media
  • Technology

Attention! B&T’s Inaugural Bootcamp Launches!

B&T announces its new industry bootcamp! And, if you're like us & didn't know anything about it, all's revealed here.

by B&T Magazine

B&T Magazine
Domain Boss Antony Catalano Exits
  • Media

Domain Boss Antony Catalano Exits

Mystery surrounds Domain boss's surprise exit, although the Mystery Machine nor a talking dog not spotted at Fairfax.

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival
  • Media

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival

Jasmin Tarasin, director at boutique production company PHOTOPLAY, is inviting invites audiences to take a trip through the inner-workings of the mind in ‘Ghost Train’, her latest multi-sensory VR project set to feature at this year’s Sydney Festival. Working in collaboration with musician and co-creative director Jonnine Standish, Tarasin’s uniquely immersive ‘Ghost Train’ is a […]

March One To Rebrand Fundraising Institute Australia
  • Marketing

March One To Rebrand Fundraising Institute Australia

Independent advertising and branding agency March One has been appointed to oversee the rebrand and repositioning of Fundraising Institute Australia (FIA). FIA is the national peak body representing professional fundraising in Australia. It was established to advance advocacy and professional standards, and has identified the need to better promote its role as the industry self-regulator, […]

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency
  • Advertising
  • Campaigns
  • Technology

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency

As part of its summer fire campaign, the Victorian government has launched a virtual reality (VR) bushfire experience and content series via The Fuel Agency. The VR experience places the user in the midst of a large bushfire, and is designed to encourage people to leave early on high-risk days before it’s too late. The […]

Local Ad Tech Company VeNA Partners With RugbyPass
  • Advertising
  • Media
  • Technology

Local Ad Tech Company VeNA Partners With RugbyPass

ad tech company VeNA has signed an exclusive reseller partnership covering Australia and New Zealand with digital rugby network RugbyPass. Across Asia and parts of Europe, RugbyPass is the exclusive digital rights holder and over-the-top broadcaster for live rugby, including the Super Rugby, the Rugby Championship and autumn internationals, the Six Nations, the Aviva Premiership, […]