Ten reports $264m loss but claims ‘best start to ratings year since 2012’
Ten has seen first half losses slide to $264m, after reporting an $8m deficit the previous year, with chief executive Hamish McLennan blaming the 2014 business restructure for the result.
But the network said it had enjoyed its best start to a ratings for three years, with a consistent uplift in audiences and a rising share of TV advertising revenue, crediting the launch of three shows this year – Shark Tank, I’m a Celebrity and Gogglebox Australia – for the improvement.
The result was mainly impacted by a write down on the value of the TV licence of $251.2m, although TV revenue also fell in the period, from $315m in 2014 to just under $310m, while TV earnings before interest, tax, depreciation and amortisation fell from $10.1m to $7.5m.
Earlier this week Ten confirmed it was in talks with Foxtel over the pay-TV company taking around a 14.9 per cent stake in the business.
Performance only got 33 times worse. Brilliant.
“The fact is that no medium can match free-to-air television’s ability to reach large audiences every day and night of the week,”
That is not true anymore and hasn’t been for years.
Look over here……”The Ten boss also welcomed the Federal Government’s recognition that TV licence fees should be reviewed.
McLennan described them as “by far the most punitive in the world”.
“As a result of these matters there is a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern.”
OH DEAR! How much longer can they hang in there???? No too much longer in a contracting FTA $ market.
Bye Bye TEN….
The worse Ten results get, the cheaper the price when News Corp/Foxtel is given permission to buy it.
@“We saw strong revenue growth from the KFC T20 Big Bash League during the 2014-15 summer and our focus on other premium live sport properties is generating incremental revenues from V8 Supercars, Formula One and Rugby Union,” he said.”
But not actual profits, because the cost of sports coverage exceeds advertising revenue. How much longer will FTA TV be able to continue subsidising sports coverage ?