Network Ten posts $168 million loss
Ratings growth from MasterChef Australia, Offspring, The Bachelor Australia and The Living Room since May has not helped Network Ten’s bottom line.
The company incurred a loss of $79.3 million in its television earnings before interest, tax, depreciation and amortisation in the year ending August 31.
TV revenue fell by 4.2% to $601.7 million, TV costs went up by 7% and the total net loss was $168.3 million, compared with a net loss of $285 million the previous year.
Network Ten Holdings executive chairman/CEO Hamish McLennan said Ten remained focused on executing its strategic plan which has resulted in ratings improvements since May and growth for the network in the 2014 ratings year.
Ten recorded its first total people audience gain (up 3%) since 2011 and is the only broadcaster to have achieved audience growth among total people and 25 to 54s (up 2.5%).
“The strategic planning and scheduling of Family Feud at 6pm has delivered strong ratings and improved audience flow into The Project, which has also grown audience in both half hours,” he said.
“MasterChef Australia was up 31% on 2013, The Bachelor Australia grew on last year and became a pop culture phenomenon, and The Project recently posted its biggest ever audience.
“Some of Ten’s new shows have also produced timeslot growth, including Party Tricks and Gold Coast Cops."
The network has announced several new shows for 2015 including ITV’s I’m A Celebrity… Get Me Out Of Here!, Shine Australia’s Shark Tank and the return of V8 Supercars.
Since launching in September 2013 catch-up service tenplay has posted a 64% increase in page views and a 56% gain in video views.
McLennan repeated his call to the government to ditch the two-out-of-three and 75% audience reach rules, which he described as outdated, anachronistic and ineffective.
Credit Suisse analyst Samantha Carleton said, "If Ten is able to improve its content offering then there is upside to our current revenue share forecasts. A continuation of the status quo would be unsustainable on our analysis and would likely result in further losses, cash drain and additional impairments to Ten's TV licence."
She values Ten's stock at 22 cents, a 20% discount to the current value of Ten's TV licence.