Ten Network Posts $264.4 Million Half Year Loss, Blames Red Tape For Loss

Ten Network Posts $264.4 Million Half Year Loss, Blames Red Tape For Loss
SHARE
THIS



Embattled telly network Channel Ten has this morning announced a bigger than expected loss in the first six months to February 28.

The struggling free-to-air-station was $264.387 million in the red for the first half of the year, a further widening of the previous half-year’s $7.983 million.

Ten’s boss Hamish McLennan said the result was to be expected after the station invested heavily in reducing costs and new programs.

2b550088-5f96-4fe7-ba02-956f867029e0_mclennan_hamish_4

McLennan was reported this morning as saying the “two-out-of-three” rule and the audience “reach” rule were hurting local media companies who now had to compete with local and overseas streaming services such as Netflix.

The worse than expected results will only fuel speculation that Foxtel is planning a move to take a large stake in the station. Yesterday Seven West Media announced it would tap the market for $612 million meaning it may throw its hat in the ring, too.

In a presentation sent to media, the station outlined its concerns which included:

  • The strategic review process continues and may or may not result in a transaction which is acceptable to TEN
  • TEN welcomes a review of the television licence fee
  • Government needs to urgently consider proposals to reform media ownership rules
  • Television ad market remains short in terms of forward bookings
  • Continuing to find new ways for advertisers to deepen engagement with viewers

McLennan was particularly scathing of the license fees the commercial stations were forced to pay.

“Australia’s licence fee regime remains by far the most punitive in the world,” Mr McLennan said.

“Paying licence fees on top of corporate tax and increasingly onerous Australian content obligations is unreasonable.”

McLennan said the TV advertising environment was also troublesome at present with forward bookings looking onerous and the entire market difficult to predict. Fairfax Media has this morning reported that if the ad spend deteriorates further for Ten it has warned investors that it will need to recapitalise.

On a brighter note for Ten, its audience numbers for 2015 had been the best they’d been since 2012. Shows such as I’m a Celebrity Get Me Out Of Here and Family Feud rating well for the station.

“Since the start of the 2015 ratings year on February 8, Network Ten is the only commercial network to increase its 25 to 54s and total people audiences, with growth of 25 per cent in 25 to 54s and 22 per cent in total people,” he said.

Please login with linkedin to comment

Advertising Standards Bureau ECD The Press Council

Latest News

Torrens University Australia Launches ‘Career Crush’ Via VCCP Sydney & Lash
  • Campaigns

Torrens University Australia Launches ‘Career Crush’ Via VCCP Sydney & Lash

Torrens University Australia has launched ‘Career Crush’ via VCCP Sydney and Lash, to help match students with a career they’ll love. Career Crush is an online quiz that determines prospective students’ personal strengths, passions and aspirations to match them with the careers and courses they’re most compatible with. One of the toughest decisions young people […]

Pedestrian Partners With With NZ’s Mi9 To Expand Commercial Offering
  • Media

Pedestrian Partners With With NZ’s Mi9 To Expand Commercial Offering

Pedestrian Group has partnered with Nine subsidiary Mi9 New Zealand to offer NZ brands the opportunity to partner with the likes of Business Insider Australia, Pedestrian.tv and Gizmodo Australia. Next month, Mi9 New Zealand will be representing Pedestrian Group in the NZ market, offering clients the opportunity to work with leading youth publications including Lifehacker […]

VCNI To Launch SVOD Service Featuring ViacomCBS Content, Replaces 10 All Access
  • Media

VCNI To Launch SVOD Service Featuring ViacomCBS Content, Replaces 10 All Access

ViacomCBS Networks International (VCNI), a division of ViacomCBS, is launching a premium streaming service internationally, appealing to audiences of all ages. The new SVOD service will start its international roll-out early in 2021, offering exclusive premieres of all new SHOWTIME series, including Halo and American Rust. CBS All Access originals will also premiere exclusively on the new service, such […]

Optus ‘Yes’ Brand Mark Taken Into New Territory By FutureDeluxe
  • Media

Optus ‘Yes’ Brand Mark Taken Into New Territory By FutureDeluxe

As part of a larger project to refine their brand with partner branding agency Re, Optus have engaged experimental creative studio FutureDeluxe to explore how the iconic ‘Yes’ brand mark behaves in a sophisticated 3D environment. FutureDeluxe have produced a series of 8x idents and a number of static key visuals which will be used […]

Emotive Partners With YouTube And The United Nations
  • Media

Emotive Partners With YouTube And The United Nations

Creative agency, Emotive, and Good Oil Films, is partnering with YouTube and the United Nations to raise awareness around the importance of quality education, which forms part of the UN’s Global Goals for sustainable development.