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

Advertising Standards Bureau ARN

Latest News

Highsnobiety Partners With Citizens Of Culture To Help Lead Its Media Partnerships In Australia
  • Media

Highsnobiety Partners With Citizens Of Culture To Help Lead Its Media Partnerships In Australia

Culture-leading publisher Highsnobiety continues to evolve its local operations with the appointment of Citizens of Culture as its strategic partner across media operations within Australia.  Highsnobiety is a premium global brand dedicated to cultural pioneers, with work spanning across digital platforms, print media, documentaries, cutting edge events, a shopping platform and a full service creative […]

Investigation Reveals That Amazon Destroys Thousands Of Dollars Of Unsold Stock, Including Laptops, TVs And Face Masks
  • Technology

Investigation Reveals That Amazon Destroys Thousands Of Dollars Of Unsold Stock, Including Laptops, TVs And Face Masks

An investigation by British broadcaster ITV has found that Amazon is destroying millions of items in unsold or returned stock. The report specifically focuses on one of the 24 warehouses the company has in the UK. According to ITV News, the destroyed items are largely unused and new, either returned items or those which never […]

by B&T Magazine

B&T Magazine
Witchery Partners With GlamCorner To Boost Subscription Shopping
  • Media

Witchery Partners With GlamCorner To Boost Subscription Shopping

Australian fashion brand Witchery has partnered with B Corp GlamCorner as part of GlamCorner’s subscription box offering as the demand for everyday essentials soars. This partnership marks another milestone for the Australian fashion industry towards becoming more circular and introducing more paths to reduce textile waste. Customers nationally will be able to rent more of […]

Curry Club For COVID-19 Relief, Powered By UnLtd, Challenges AdLand To Raise $100,000
  • Marketing
  • Media

Curry Club For COVID-19 Relief, Powered By UnLtd, Challenges AdLand To Raise $100,000

The media, marketing and creative industries are being encouraged to host their own ‘Curry Club for COVID’ before 30th June to help meet the ambitious $100k target set by its organisers. Curry Club for COVID, which was conceived by long-time adtech executive Peter Bray, sales director at Impact, and is powered by industry social purpose organisation […]

by B&T Magazine

B&T Magazine
UnLtd’s ‘Goals for Good’ Soccer Tournament Celebrates 10 Years
  • Media

UnLtd’s ‘Goals for Good’ Soccer Tournament Celebrates 10 Years

The UnLtd Cup is returning for its tenth consecutive year, marking a decade of soccer shenanigans that’s raised nearly $500,000 for children’s mental health charity, KidsXpress. On July 22-23rd, 28 teams from across the industry will battle it out on the soccer field in the two-day tournament at Sydney University Sports and Fitness Centre, Darlington. […]

Mobile Pnone Shopping Online With A Debit Card
  • Marketing
  • Technology

Ultra Commerce Acquires Vesta eCommerce

Australian-bred company Ultra Commerce has acquired New Zealand-based company Vesta eCommerce, a global software business providing leading product data management solutions. The recent acquisition is a significant move for the business, which is Australian born, owned, and headquartered, but has built out a global presence as it pursues rapid growth in the eCommerce market. Connecting […]

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign
  • Campaigns

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign

Canteen’s latest campaign features the combined talents of Director Luna Laure and creative agency Crater. The campaign strives to raise awareness for young people affected by cancer. The awareness campaign centres around Harry Barentson, who at 12 years of age found out his pregnant mum had cancer. The campaign aims to bring awareness to Canteen’s […]