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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.

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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

  1. @warren a successful show – do you only count the one’s that you personally like? A show does not remain on air, especially for 27 years if it is not successful. Get real.

  2. @franz chong – TEN must be doing something right on Tuesdays as the NCISs are the few shows still rating and often they beat Nine on that night. And this is up against the Rafters.

  3. Can all the whingers stick to critiquing television content and mock programming rundowns; and stop trying to sound knowledgable on things you quite clearly know little about.

    “People will be worried about their jobs”
    “Ten is the new OneTel”
    “Channel 10 should just shut down operations”

    If you know anything about business, especially This business, it’s just going through the cycle. It happened at Seven about 9 years ago. It happened at Nine about 5 years ago. It happened at SBS about 10 months ago. Now it’s happening to Ten.

    Cutting the fat, restructuring, paying out contracts and redundancies, all cost big big money. ou grit your teeth, shoot the gun, report a terrible year to the shareholders, and get on with running a much tighter ship.

    In comparison to the other networks, Ten is Well placed to bounce back. Anyway, without writing a novel, my advice, get that couple of grand out of high interest savings and roll the dice with some Ten shares. They opened at $0.85 yesterday. With revenue up 1% to one billion, but without ‘the fat’ to be cut next year (which is what ate the profits this year), in 12-18 months I’m going to say they’ll at Least be $1.70 a share, and if they have a stellar year, might break the $2.00 mark. Do the maths based on 1000 shares…

  5. @ mj yeah some people on this site sure do make ridiculous statements. Rush, Offspring, Secret Life and all their dramas this century have been ratings flops. Not one has been a success. And as for Neighbours… well that was big back in ’86, what century are you living in now, have you seen its ratings in the last 15 years???

    Next you’ll be telling me 7pm Project and Negus are also a success. Are you trying to make a fool of me here?

  6. Really? Some people on this site make ridiculous statements. When was the last time they had a successful drama- seriously? Rush, Offspring, Hawke, Secret Life of Us. Successful, hmm the longest running drama on Australian television, oh yeah, that’s on Ten too…… for the past 27 years.

  7. Ten is a disgrace.Tuesday Night’s and this was way before the likes of the Rafters even existed used to be Teen Drama Time with the OC/90210 type of show.Now they show that crap NCIS which unless you are bogan and love police procedurals give it a wide berth.

  9. I think these figures and the ratings safely say that ONE sports Has been a complete failure. But obtaining sports that rate was always going to be an expensive exercise. If they had afl NRL and cricket. It would have rated. Been damn expensive And would have had to be on ten aswell. It was destined to fail from the start!!! Nice idea. But never going to work!!

  10. Ah, what a nice bottom of the barrel network Warbuton gets to build up? Should ad nicely to his share bonus options when the costs of the this years redundancies and cost cutting are paid and buried before his watch, nice work!

  11. Murdoch states that they are well positoned in 2012 with “Better content”. What better content? They have axed everything that was dcecent about the network. Under the old management they had gone from a loss in 2008-09 to a $150m profit in 2009-10. And now 2010-11 has turned into a marginal profit. What Murdich thinks that it was a flawed strategy was clearly wrong. They were on the right track and then just as they new strategy was kicking in the new owners came and stuffed around with everything. The network is a basket case and will take many years to recover.

  13. Ten is a total disaster
    was also my favorite station from no 96 days
    even lasted through mr shanks disaster mismanegement
    Not any longer under mr murdock
    Pity poor bugger taking over soon
    Brand has been distroyed
    Needs Gruen to discuss its total downfall

  14. I am not surprised profits have plunged! No one is watching 10 as a reliable station anymore! Fave shows get yanked off air, put in different timeslots (Sometimes continuously) and new eps have repeats mid way through the season.
    Fix all this and viewers may return and hence the advertising dollar and revenue may increase, it isn’t rocket science!

  16. Can anyone remember when Ten had decent shows at the right times –
    Thank God You’re Here
    Good News Week

    Now we have mates of the board getting a gig

  17. What a surprise Murdoch & Packer knobbling One due to their Fox Sports ownership. Throw anything at Ten on the bonfire and sell it off for a tidy profit.

    Problem solvered.

    I wonder if the Gina Report will get the axe? Highly unlikely despite the deplorable ratings.

  18. I generally agree with most of the comments on this story. Network Ten Holldings axed shows, staff and some sports, that will always cost money because of paying the axings out, so not surprise there. As far as being well positioned going into 2012, well that is not as clear cut as Lachlan would have us believe. The Networks programing has gone down hill, granted most of the bad decisions were made by the previous regime even if they may have been good ideas, just poorly executed or have been even bad ideas. I am guessing Lachlan thinks that the NRL will do for the Network what AFL did, not sure about that. I also have my doubts on whether James Warbuton will be left to do his job instead of interfierance from Murdoch and the rest of the board. There is alot of unknown for the network going into 2012.

  22. The headline makes it sound worse than it is (thanks David) they are still in the black and making a profit unlike many business out there. I’d like to know how our networks stack up with other from around the world when it comes to profits. Just look at the cuts the BBC has been making of late, and I’m sure there are a few networks in the US running in the red.

  23. The result wasn’t that bad, headlines a little deceiving, there was a change in accounting policy which had a negative impact, and one off restructure costs, share price is up over 8% today.

  24. Well done Murdoch, The AFL was bringing money & sponsors during the season & channel 10 so you axed the AFL. I cannot see profits made with no AFL broadcasts for at least next 5 years. Shame Lachlan Murdoch Shame

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