TEN forecasts earnings loss

TEN has warned the market it is facing a full-year earnings loss of up to $30 million, without relief from a reduction in licensing fees.

TEN chief executive Paul Anderson attributed the position due to weak ad markets and rising costs.

If market conditions continue to decline and there is no relief from federal government licensing fees, TEN warned it is facing a full-year earnings loss of $20 million to $30 million.

Anderson said the network is conducting yet another ‘rigorous cost reduction project’ and would review the carrying value of television licences ahead of its half-year results.

“This industry is obviously under severe duress and yet commercial free-to-air television broadcasters continue to be penalised by the world’s most expensive broadcast licence fees,” he said.

“Without the investment of the commercial free-to-air broadcasters, local production will dry up, jobs will be lost and local news will be a thing of the past.”

Yesterday Seven warned full-year underlying earnings would be down by 20% due to soft ad markets.

Source: SKY News / AAP