★★★★★ 0/5

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.

59
Leave a comment

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

  1. @Secret – I agree, Nine look to still be in a worse place then TEN at the moment.

    It’s not hard to imagine why this happened. You don’t make over 10% of your employees redundant and not expect to be hit in the pocket where cash flow is concerned. ONE will be more profitable going forward.. Eleven is doing very well as of late… EYE Corp is doing well. Although regarding EYE Corp.. there is still a billboard telling motorists that Can of Worms is on Monday 8.30 on Parramatta rd so they may want to fix that.

    I think it’s amazing that Seven, the number 1 Network posted a profit of 115 million yet last year TEN out did them by almost 30%…

  3. well done Murdoch. Ten is the new OneTel. He has done a superb job at causing long term damage.

    Running a TV network should not be as hard as he makes it look.

    7pm Project has been ok and now its 1hour length – yikes! on the back of 1 and half hour news bulletin. Seriously, Ten is a disaster.

  4. I came here to school you in maths.

    To say it plunged 90.5% means their profit this year is less than 10% of what it was last year. You meant to say that it plunged *to* 90.5%.

    But then I read the article. It really Did plunge by 90.5%. Wow. That’s some ballsy management there. Let’s hope it pays off!

  9. Get rid of one of the newreaders doing the 5 Pm news, it always puzzles me is when one of them is leave, they other does it alone..a waste of money having two newreaders and save money by keeping Mike Larkin in the studio, his tedious reports and his inane comments grates a lot of people

  11. “The company is now well positioned for 2012”. Pity it’s so badly positioned in 2011!

    James Warburton is certainly coming in at a good time. Shouldn’t take much to show an improvement from here!

  15. Don’t forget, when “The Nine Entertainment Company reported a full-year net profit of $92.5 million” TEN reported a net profit of $150 million. The sky is not falling. Just some very dark clouds, which have passed.

  18. I hardly think TEN is broke, or going broke. “Revenue increased one per cent to $1 billion”. The big expenses were one-off write-offs ” $85.4 million on restructuring following an operational and strategic review.”.

  19. Guys, read the article. Their revenue actually increased slightly. This year’s profits have been eaten into by money spent on restructuring, paying out on staff redundancies, and getting rid of unprofitable contracts. I think Ten are in a better financial position than Nine at the moment. We’ll have to wait and see what effect this restructuring will have on their bottom line.

  21. Oh. My. God. That is shocking and deeply humiliating. Their business model sounds as though it is unsustainable and their strategic direction a joke. I’d be very worried if I was an employee of Ten.

Leave a Reply