TEN cuts annual loss by 50%

Depending on who you read TEN’s annual results today are either good or not-so-good news:

AdNews: TEN grows TV revenue by 7.5% after solid gains in audience share

ABC: Ten Network shares smashed on $157m loss

Mumbrella: Network TEN returns to profit

Business Insider: The losses continue at the TEN network as the value of its TV licence falls

Daily Telegraph: TEN warns of “uncertain future” for local content

TEN posted a full year loss of $156.8 million despite a 5.4% rise in revenue to $689.5 million.

Much of the loss was from a non-cash expense of $125.3 million, including a television licence impairment charge of $135.2 million and a net gain of $23.1 million on the sale of the Out-of-Home business.

TEN’s results for the 12 months to 31 August 2016 included:

• Television EBITDA of $4.5m (2015: loss $12.0m)
• Television revenue of $676.4m (2015: $629.3m), up 7.5%
• Revenue market share of 24.0%, an increase of 2.2 share points (2015: 21.8%)
• Commercial audience share in 25-54s of 29.5%, best result since 2012
• Television costs (ex-selling costs) increase of 5.1%, versus guidance of 5.5%
• Net significant expense items of $125.3m, including television licence impairment charge of $135.2m
• Net loss for the period attributable to members of $156.8m (2015: net loss $312.2m)

TEN chief executive officer Paul Anderson said: “The past year has been a period of considerable change and steady progress at TEN.

“Our strategy of investing in primetime content and new distribution channels, coupled with the innovative and market-leading arrangement with MCN, is producing sound results.

“TEN and MCN have driven revenue growth despite soft conditions in advertising markets, with the company’s revenue growth tracking well ahead of the market and revenue share in line with our expectations,” he said.

“Our content strategy is working, with TEN increasing its audiences on television and across online and social media platforms. We continue to invest in differentiated content in a disciplined manner and we now have a domestic content schedule across the entire year, bookended by the KFC Big Bash League.”

Paul Anderson warned that regulatory uncertainty was threatening the free-to-air industry’s existence and more relief was needed in the form of a cut in TV licence fees.

“Increased competition from untaxed and unregulated providers is bringing major challenges,” he said.

“In order to keep investing billions in a strong Australian voice on screen, this sector urgently needs a significant reduction in television licence fees.”