This thread would probably be the best one to discuss that article in.
Ten probably really needs the cricket rights (not just what they have now, but also the coverage that Nine currently has) to remain a sustainable network in the long run.
In any case, I personally hope that Ten can survive. A commercial TV landscape with just Seven and Nine would probably be to broadcasting what Coles and Woolworths are in retail: Dangerously uncompetitive.
The third commercial network will survive, it’s just a matter of how that happens. If Ten goes into receivership as it has before then the licences would be sold off, with WIN being the obvious buyer, I think. ACMA can give exemptions to the ownership rules, so if WIN got a two year exemption before they had to sell any licences maybe the reach rules would be changed by then, if they hadn’t already been changed.
I am expecting to see that if everything is that dire - there will be another round of cuts to certain departments coming. I would certainly hope not… but still.
The only problem with that is, will Cricket Australia or does Cricket Australia need TEN. Do they risk placing everything on TEN, not knowing if there product will be shown on a network that is in Fin problems. Its a massive risk to cricket; Cricket Australia know that people will follow their product (game) to TEN as shown by the BBL, but does cricket Australia want to risk the rights with someone who isn’t stable and has a clouded future.
This is an issue for all sports and programs who are looking for a channel to show off their product.
Cricket Australia to buy Network Ten… relaunch as the All Cricket Channel coming in 5, 4, 3… 
Ten’s share price continues to be smashed days out from their half yearly results. Sharemarket predicting doom and gloom.
Honestly anyone who invests in media and airline stocks is asking for it at this point. They’re notoriously unstable, and media is generally always a poor performer. Investing in the worst performing company in a terribly performing industry is a very very silly move.
They should be dragged kicking and screaming from the stock exchange IMHO
Ten to either dump or drastically reduce what it takes from its current output deals.
Apparently the results are coming out today… Its not looking good for TEN.
There may be a new redundancy package scheme.
From The Australian - same as Seven and Nine - writedown of value of TV licenses but the report sounds more positive than recent media reports.
Commercial TV licence writedown puts Ten in the red
Some of the points include
Ten Network will slip into the red for the half-year after booking a multi-million-dollar writedown on the value of its commercial television licence, but the broadcaster will deliver better revenue growth than forecast.
… Ten will post a loss in the low single-digit range for the half year.
… television revenue is expected to come in above the 1.2 per cent increase outlined in a trading update on February 16.
Buoyed by more robust ratings, Ten has carved out a bigger share of the $3.4 billion TV ad market after major changes were made to the way the network’s advertising is sold under sales arm Multi Channel Network.
Nine Entertainment took a $250m charge on the Nine Network at the half-year, and Seven West Media was hit by $83.3m in writedowns. An impairment loss of $135.2m was also recognised by the Ten in the year ended August 31, 2016.
Meeting is at 10:30 this morning.
The BBL and I’m a Celebrity Get Me Out of Here attracted outstanding ratings in the summer but did not attract enough advertising revenue for Ten? That’s disappointing.
It doesn’t say that. It’s more likely taht those are the only things attracting advertising revenue and everything else struggles so they ended up on a loss.
Other than BBL, I’m A Celebrity and The Project, what else does Ten have going for it (if anything at all).
MasterChef
I would argue they did atrract big advertising revenue, certainly the BBL, but not to the levels Ten are needing or perhaps analysts were expecting.
I hope to see some positive praise at the merting, directed to Ten’s ratings & advertising share growth, particularly MasterChef, BBL, Survivor & I’m A Celebrity.
#ten Network Holdings’ First Half FY 2017 Financial Results
Ten Network Holdings Limited (ASX: TEN) (“TEN”, “the Company”) today announced its results for the six months to 28 February 2017. The results included:
Television revenue growth of 2.1% was higher than the 1.2% increase predicted in the Company’s trading update on 16 February 2017 and was achieved in a capital city free-to-air television advertising market that declined 5.6% during the period.
The television earnings before interest, tax, depreciation and amortisation (EBITDA) loss of
$2.4 million for the six months to 28 February 2017 was in line with the guidance provided in the most recent trading update.
TEN Chief Executive Officer, Paul Anderson, said: “The above-market revenue growth and increase in revenue share during the first half of the 2017 financial year was driven by investment in local content and the audience momentum TEN has built in recent years, along with the continued success of our partnership with Multi Channel Network Pty Ltd [‘MCN’].
“However, as we flagged in the 16 February trading update, the growth in revenue was not enough to offset the weak conditions in the television advertising market and the Company’s increased content and other costs.
“TEN has commenced a transformation program to improve all aspects of the business. This whole-of-business program will improve revenues through a range of initiatives that complement the MCN relationship and will achieve significant cost savings as previously foreshadowed, most of which will fall in the 2018 financial year onwards.
“TEN continues to improve revenue and revenue share in a difficult market. The long-term focus on delivering advertisers the benefit of a world-class automated trading platform continues with MCN, with dynamic trading having commenced in February 2017. Dynamic trading offers advertisers more certainty that their advertising campaigns will reach the audiences they want to reach,” he 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.”
The success of TEN’s strategy of investing in premium prime time content was evident during the 2016 calendar year with the primary TEN channel achieving its highest commercial shares in total people and the key 25 to 54 demographic since 2011. The Company also achieved its highest network commercial share in total people since 2011.
The audience momentum in 2016 and into 2017, plus the partnership with MCN, underpinned the 2.1% growth in TEN’s television revenue during the first half and and the increase in revenue share of 1.8 share points.
Mr Anderson said: “TEN has clear momentum in terms of revenue and revenue share growth as we head into the strongest part of our year, led by MasterChef Australia.
“In the 24 months to the end of February 2017, our revenue share increased in 22 of those months. Our revenue share of 25.2% for the first half of the 2017 financial year was our highest six-month share in five years.
“MCN and TEN had a combined 40.5% share of the key 25 to 54 age group in the first half. As the advertising partner for both TEN and Foxtel, MCN offers advertisers access to a large amount of content across multiple platforms that has a proven ability to deliver powerful sales results,” he said.
“The strength of TEN’s content offering was clearly demonstrated at the TV Week Logie Awards last weekend, when TEN won eight awards, more than any other television network.”
TEN’s online catch-up and streaming service, tenplay, continues to perform strongly. During the six months to 28 February 2017, it achieved growth of 17% in advertising revenue, 31% in video segments views and 16% in unique visitors. Tenplay is available on 12 platforms, more than any other commercial free-to-air network’s content, and will expand to 20 platforms during 2017.
In September this year, TEN will introduce tendaily, a new, standalone website that will be rich in short-form video and offer users news, entertainment, lifestyle and sport content. Tendaily represents a significant expansion of the Company’s digital strategy and will operate alongside tenplay.
Significant Items And Debt.
The Company reported net significant expense items of $214.6 million, including a non-cash television licence impairment charge of $214.5 million.
TEN’s net debt at 28 February 2017 was $30.2 million.
Costs and Cost Guidance.
Television costs (ex-selling costs) increased by 7.4% during the six months to 28 February 2017, due to investment in new prime time domestic content which has driven increased audiences.
Television costs (ex-selling costs) are expected to increase by mid-single digits in the 2017 financial year, as flagged in October 2016.
The benefits of the whole of business transformation program are expected to predominantly impact TEN’s financial results from the start of the 2018 financial year.
Financing Facility.
TEN is currently seeking to secure an amended or new borrowing facility given its existing financing facility expires on 23 December 2017.
The facility is required as a result of expected future trading performance and volatility within the free-to-air television advertising market.
Further detail is provided in the Appendix 4D lodged with the ASX today.
Outlook And Guidance.
The challenging capital city free-to-air television advertising market conditions remain.
However, the first quarter of calendar 2017 has proved more resilient, with the market increasing 2.3% compared with a 4.6% decline in calendar 2016. The first quarter increase, in part, reflects the fact the Easter period fell a month earlier this year.
The market remains short and difficult to predict, despite television advertising remaining the best way to deliver positive returns on advertising spend in a brand-safe, advertiser- friendly environment.
Absent any relief in television licence fees, this will result in an underlying EBITDA loss for the full 2017 financial year of between $25 million and $30 million.
Interim Dividend.
No interim dividend will be paid.
Note: Above lodged with ASX. Separate presentation will follow later
Presentation available to view
Ten National News. Get rid of all the local bulletins. How much would that save?
Essentially close down Como in Melb. Move the Project to Sydney.
Other option is close the whole thing down.
Looks like with this ten daily thing they actually may axe local news and have some sort of national thing complimented by this online thing. Who knows?
Wonder why they aren’t taking their plans to market?
All this alleged revenue growth will be undone with the biggest loser flop and then with eventual loss of the big bash. Only one more season of that left.