Guthy Renker posts beauty of a loss

vpHave all those late night ads sent Guthy Renker Australia to the wall?

Advertisements including beauty products by Victoria Principal and Cindy Crawford screen on Nine from about 2am, but the Australian arm of the US-based marketing giant, generated a net loss of $15 million last year, claims news.com.au.

When the company balanced its books on December 28 it had a net asset deficiency of more than $17.8 million.

Guthy Renker Australia is continuing to trade because of support provided by its US shareholders Guthy Renker LLC and Global Synergy International.

The losses are believed to be affect by a surge in general costs such as advertising and $7.4 million in foreign currency losses.

If Victoria’s Beauty Principal products don’t send you to the wall, beware of possible side effects. She was recently reported as pulling a hand-gun on a maid after a dispute with a former employee.

Source: Herald Sun

11 Comments:

  1. I hope GR will remain in australia, they are very sucssfull world wide, did we all forget business is tough for all, they do provide lots of jobs around Australia it is alway easy to be negative and critical is this the toll popy coming out. We should all do what is need to be and spend as much as we can to keep the Jobs in Australia.

    • All for Aussie jobs but usually the Tall Poppy Syndrome is associated with things that have been cherished first. Not sure that really applies to an advertorial, but I guess some people are happy with their products. Do you consider criticism of Peter Popoff as Tall Poppy too? He’s another late night filler…

  2. all of the majors are culprits. we have 12am – 4am paid advertising, then all through the morning shows 9 – 11 am, when do we actually get tv content on..

    I don’t why 7, 9 and 10 are classed as commercial networks, they should be classed at 5 – 10pm networks because it seems that they only time they put anything decent on.

    Thank god for oneHD my tv is on it when ever i am at home during the day.

  3. Awesome news. Die, “trusted” Guthy Renker, and leave our late night TV alone.

    You don’t want to know my version of their company name on a family-friendly blog. But some may be able to guess.

    Hopefully now it’s just a matter of time until they shut up shop.

  4. Sean as a viewer of American TV I can tell you many after 12am go to infomercial mode. Many break that programming with reruns of news and old episodes of punkd for example. Their are plenty of people out there that are shift workers so I’m suprised no network has gone ahead and added something different. I guess thats where the benefit of 1HD is that the rest of the channels have rubbish and atleast you get some actual content.

  5. I was always curious about the financial viability of the late night informercials.

    They play the same ads every night every single day for huge blocks of time . I used to wonder whether they generate enough revenue to justify it. Are they hoping that everyone will stay up at some point and see an ad.

    Maybe the business plan is different in America and there is less emphasis on informercials in the middle of the night. Focusing on housewives who will watch daytime television but not stay up in the middle of the night. But they also do that here with informercial segments during the morning shows.

    I agree that it is better to repeat a proper program. It is horrible content for viewers, pure advertising and same thing every night. It is like playing the exact same episode of a tv series every single day.

  6. Maybe a wake up call that people are over infomercials and don’t care for them. If they stopped, we could have real programming on the networks from 1-4am, even if they just replay primetime from earlier that night

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