TEN profit plunges 90.5%
TEN Network Holdings full year profit has plunged from $150 million a year earlier to $14.2 million following its operational restructure.
- Published by David Knox
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TEN Network Holdings full year profit plunged 90.5% for the 12 months to August 31.
Net profit fell from $150 million a year earlier to $14.2 million. Revenue increased one per cent to $1 billion.
TEN said it spent $85.4 million on restructuring following an operational and strategic review.
This involved identifying a number of unprofitable sports contracts, many of which related to ONE. It also included a one-off $46.1 million charge relating to slashing 12 per cent of its staff, restructuring charges and program write-offs.
Earnings for the out of home division Eye grew 22.7% to reach $18.4m, up from $15m in the previous year, while operating revenue was down 6.1% to $148.5m.
“Our 2011 fiscal year results reflect an unsuccessful strategy that we have spent the better part of the year rectifying by taking the tough decisions around costs and programming,” interim chief executive Lachlan Murdoch said.
“The company is now well positioned for 2012 with the imminent commencement of its new CEO and a revitalised management team, with a more efficient overhead, better content, and more opportunities for our clients to reach our in-demand younger audience.
“We remain on track with the operational and strategic review and will focus on actions that will create a platform for the business to outperform.”
TEN indicated that its revised strategy would be led by Anthony Flannery from the start of next year, alongside incoming CEO James Warburton.
Recently Southern Cross Media chairman Max Moore-Wilton expressed concerns over the network’s ratings performance.
Source: Herald Sun, B&T
59 Responses
I don’t mean to brag… it’s only been three days and shares are up 12c…
No surprise Ch10 has plunged. The programming has been disasterous. There’s a limit to how many repeated episodes of SVU, Moden Family, etc that people can watch.
Still floored that Ch10 canned one of its regular highest rating shows Mon to Thurs when it was on at a regular 10:30pm timeslot, Late News. SBS has used its common sense and swooped in on the 10:30pm slot & will reap the rewards. Put Sandra Sully back where she belongs Murdoch & at least have 1 locally produced show that has a steady following.
Total lack of understating of television @ Warren – it’s a business, if shows are not profitable (successful) they don’t stay on air. The landscape has dramatically changed with digital tv, cable and the Internet, ratings are not what they were in the past, so adjust with the times …but hey if your last favourite drama was No.96 that really speaks volumes!
@ mj nothing to do with what I like. Neighbours was actually moved to Eleven because of low ratings because nobody watched and can now go in Australian television history as the lowest rating Australian drama that is still being produced ever.
@bettestreep2008
You really think so? I think Foxtel subscriptions are up because Foxtel are offering their basic service for as little as $50 a month with free installation, who wouldn’t at least give that a trial? I can’t remember a time within the last 18 months where Foxtel hasn’t had some kind of offer to tempt households.
Besides as people keep saying, all the mulit channels basically replay everything Foxtel has to offer all day every day. I don’t think you can single out TEN…
TEN with Scouthern Cross Ten being trolled behind are in deep poo. Their ratings performance in the last 12 months has been a disaster. They only have 1 show that really rates, 9 have only 2 1/2 and 7 have 6. Lach M is doing his best to talk it up. James W must be think WTF have I done?
Funny how Foxtel is increasing it’s viewership at the same time that Ten is going down the toilet.
Even Blind Freddy can see the “conflict of interest” here – but Stephen Conroy and his mob are doing nothing about it.
@ Oztvheritage(YouTube channel). ONE HD was gamble yes but a gamble which the previous administration thought was worth taking, i am likely to agree with launching ONE. THe part which was always going to be a stickler was the timing and the exectution of it all. Timing because they (Ten) should have waited untill the rights to better sports were up for grabs then pounce. Also they should have launched 11 first then shift the entertainment content which was mainly youth orientated anyway from Ten HD to 11 before launching ONE then they wouldnt have had to sell rights to some cool shows, which were on Ten HD. If a sports channel is such a bad idea then how come FOXtel is racking it in, you need to remember FOX started out with ordinary content as well in the mid to late 90s, and now they are the biggest sports channel in australia and they are the reason why the majority of people get pay tv because of the sport. ONE needed more time, yes the idea was badly executed but the idea itself was good and it would have worked if it was launched later, more inline with the analogue switch off or the experation of the big sport contracts.
What hasn’t been mentioned is that despite this massive decline and write-offs that the directors have declared a dividend which exceeds profit. In other words Ten is borrowing to pay a dividend and the principal beneficiaries of the dividend are shareholders Lachlan Murdoch, Gina Rinehart and Bruce Gordon. If Ten was serious about content the shareholders would forgo the dividend and invest it in strong original content which combined with some good content from its output deals may help immensely. Television is a volatile blend of strategy, good content creation or acquistion and luck. James Warburton has a hell of a job on his hands.