TEN enters voluntary administration
Administrators flag business as usual as they look to “potential sale or recapitalisation" of the network.
- Published by David Knox
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Network TEN has entered voluntary administration and appointed Korda Mentha as administrators who will look to “potential sale or recapitalisation of the business.”
The announcement follows Lachlan Murdoch and Bruce Gordon refusing to back new loans for the ailing network.
In a statement the network pointed to renegotiating new US output contracts, which has been agreed in principle with CBS and 20th Century FOX but not finalised, and the need for the passage of media reforms, to be tabled in parliament tomorrow.
Administrators plan to work closely with management, employees, suppliers and content partners and continue operations as much as possible on a business as usual basis.
Today CEO Paul Anderson advised staff that payroll went through as normal today, and redundancies are not on the cards at the moment. He quashed rumours of SKY News replacing TEN News and spoke to the network’s positive programming line-up.
Statement:
Ten Network Holdings Limited (ASX: TEN) (“TEN” or “the Company”) announces that Mr Mark Korda, Ms Jennifer Nettleton and Mr Jarrod Villani of Korda Mentha have been appointed as voluntary administrators of the Company and each of its subsidiaries listed in the attached schedule (together the “Ten Group”) by the Ten Group Directors.
This decision follows correspondence received from Illyria and Birketu over the weekend which left the Directors with no choice but to appoint administrators.
This decision comes despite the Ten Group making significant progress to realise the potential sources of improvements to future earnings identified in the Company’s Directors’ Report contained in its Half Year Financial results announcement, that is:
• delivery of the cost and revenue initiatives identified in the transformation process currently underway;
• renegotiation of material programming contracts; and • reduction in Federal Government imposed licence fees.
In relation to the transformation process, the Company has identified initiatives that are expected to have a positive impact on earnings in the order of at least $50 million in FY18 and potentially more than $80 million per annum by FY19.
In relation to the renegotiation of programming contracts, the Company has agreed in principle the vast majority of the commercial terms of replacement volume content supply agreements with its US studio partners, Fox and CBS, although final terms have not yet been formally agreed. The effect of these replacement content agreements, if finalised and implemented, would be to reduce by approximately 50% the Group’s future liabilities for US content, while still allowing TEN access to the best productions of those studios over the medium term.
In relation to the reduction in Federal Government imposed licence fees, TEN anticipates that after the changes to regulations anticipated to be tabled in Parliament tomorrow pass through the Parliamentary process, the reduction in licence costs for TEN in FY17 will be in the order of $22 million and, in FY18, $12 million.
The administrators have advised the Company that they will work closely with management, employees, suppliers and content partners while they undertake a financial and operational assessment of the business. During this period, the Administrators intend to continue operations as much as possible on a business as usual basis.
The Directors of TEN regret very much that these circumstances have come to pass. They wish to take this opportunity to thank all TEN employees and contractors for their commitment and enthusiasm for TEN’s programs and business. In particular, they would like to express their sincere gratitude, respect and admiration for TEN’s leadership team, who have achieved everything the Board has asked them to do over the past few years in very challenging circumstances. They wish TEN and its management TEN all success in the future as the Administrators look to the potential sale or recapitalisation of the business.
61 Responses
I gotta say I’m a big fan of a lot of the shows Ten have on their roster. I’m a celeb, Bachelor/Bachelorette, Have you been paying attention, Gogglebox & Australian Survivor are all some of my favourites and do well in ratings. Surely they will continue to produce them.
i must admit i have not kept much of a tally on Ten’s ratings so i don’t know exactly how they compare to 7 & 9, but i would have thought with generally consistently very strong rating staple shows like Masterchef & I’m a Celebrity…, & a good range of other shows that are popular it would be enough to rake in pretty good advertising revenue? Is part of the problem that TV advertising revenue is just not what it used to be? Is it production or admin costs too high? or is it poor ratings? I guess epic fails like last season of the Biggest Loser would have taken a big chunk out of any profit.
I also wonder how cost effective Eleven is? Is it mostly just used as a cross promotion tool for Ten? It has Neighbours & the rest mostly old comedies (i’ve actually enjoyed watching quite a few of the reruns of Frasier, Raymond, & before that Happy Days) but do they generate any advertising…
If Ten was to go under, would anyone else want to create a new channel to replace it? It’s a bit of an archaic business model nwo
I watch little on Ten these days. I can’t help but feel Ten has been to slow to invest or develop new formats or acquire new international formats, instead renewing low rating shows year after year that wouldn’t have survived on Seven or Nine.
At least receivership will void its expensive output deals with Fox and CBS.
Such a sad day. Ten continues to be my most watched commercial FTA station. They have an attitude and boldness with their programming that is wantonly lacking on 7 and Nine. Seriously.
Ch 10 need to ditch The Project, it has crushed their ability to be flexible in the early evening. Waleed Aly as a host, has been, on occasions, a little too political and way too leftie. Breibart News and The Andrew Bolt Hour would surely do better?? Maybe?
Why would TEN need to ditch one of their highest rating shows which The Project is .make more sense to ditch its lowest ratings show which the Bolt report is .TEN isn’t going anywhere this going into administration is being done so Ten can break its 21century and CBS contracts .its these contracts that are its Achilles heel .
Bolt moved to SKY in 2016.
Bring back John McApline! He helped TEN the last time they were in administration. TEN will undoubtedly be in a better position after this. Seven and Nine would have preferred that TEN no go down this path. The shackles will be broken off this current structure, and a new structure will be formed taking advantage of its low cost base.
Should 10 not survive, this is nothing short of a disaster for FTA television in Australia. Whilst I get extremely annoyed at their programming there are so many times they hold a light up to the other networks. Their drama plate was unequaled in my opinion with Offspring and Puberty Blues among others and they do reality without the lowest common denominator nastiness that currently prevails. I understand ratings dictate and that it is/was only a matter of time but a huge shame for an entire industry.
I hope that TEN can sort themselves out, perhaps in 20 years time we will look back at this and say it was the ‘administration’ that had to happen.
Only way is up.
Or a bit longer – it’s what, 26 years since the last time they were in administration? It was “the administration they had to have” back then too (and the trope-namer was still in memory…)
Ten was good when it had reality stripped to 7pm weeknights! 7.30 is not good enough anymore, you must get in early on 7 and 9’s offerings and we all know the project does not need 1hr! it has too much crap to try fill the 1hr show so bloody cut it by 30mins! Bring back new Simpsons to 10 and leave repeats on 11. Bringing back 10 late news would help for late night figures. Ten must go for the next round of AFL Rights because lets be honest 7’s coverage crap and it would help their wknds share. They also need a new programmer, one who likes consistency!
Despite a few perplexing decisions, most of TEN’s programming has been very consistent.
Yeah I think ch10 have been steady with most of their shows, mainly cos they do not have the money to show anything else
Unfortunately while Murdoch is at ten ten will not have any high profile sport in its own right from now on. If it does it will just be a broadcast simulcast of foxtel broadcast like Supercars and A league.
Amazing how one having NRL and the other AFL can make the world of difference, after all it was only in 2012 Nine were looking at going into administration. Plus it was only recently Nine were talking of dumping the Cricket to save cost unless they get the lot, well I’m guessing with this for TEN they’ll end up with the Big Bash after all now.
Murdoch should never have pulled ten out of bidding with seven for afl rights. That was the end No chance to build up a network without a stong base to build from. Afl would have brought eyeballs to the network to help promote other shows. Just look at seven. The content is nothing great.
Even thought I’m currently pissed off at ten for removing NCIS with 5 episodes to go (really poor decision) I would be sad if ten does not survive. I’m a predominately drama viewer and a big chunk of my free to air drama viewing is on ten.
Cricket Australia most likely seeing any increase in post 2017/2018 rights evaporate away now for sure? Wonder if they will wait to see proposed media laws pass first before starting serious bidding talks? Which will come first, TEN closing down or media law changes passing through Parliament by which time it could be all too late? Cricket Australia might have to accept a take it or leave it offer from Nine or combined Nine/Foxtel? Can’t see Seven bidding seriously for the rights except t o help push the price up Nine would pay?
Seven wouldn’t really have room in their schedule because of the tennis. I wouldn’t like to see the big bash go to nine cause quite frankly ten have done a better job of their cricket coverage then nine have. I also wonder what’s going to happen with aleague since they’ve recently done a new deal for next season and Socceroos matches post world cup qualifying.
It’s a shame but the train derailed long ago – where to begin…
*Losing AFL rights which meant fighting SBS and multichannels on a Sat night to not finish 6th or 7th
*Lazy and apathetic programming – Modern Family and Jamie repeats everywhere at one stage
*Moving out of the reality space it built and once owned, which is capably now in the hands of 7 and 9
*losing its nerve on the news revolution in 2011 – there is now more news than ever on 7 and 9
*The Project is very divisive and lost its way much like QandA – once great shows hijacked and losing their way – at the end of the day TV is about entertainment, if I’ve had a hard day at work, the last thing I want is to be lectured too by some smug presenters about how to think – that’s a fact
The bright spots – Studio 10 is a Diamond in a dessert of quicksand
Didn’t think it would take long for the “Ten is sinking because Waleed Aly is smug” bit to surface. That’s not a fact, its an opinion……
Well my dear the ratings suggest otherwise, and FYI I didn’t single out Waleed… presenters…plurals there pal
I do notice you didn’t question my suggestion you were stating opinions as facts ‘pal’. Yes, you didn’t single out Waleed but not that difficult to work out you meant at least Waleed. FYI, I’m not a dear, never have been.
Sigh. When I try to give some people the benefit of doubt with tone, alas it doesn’t take long to descend. Take out outside thanks, fellas.
A “dessert of quicksand”. Sounds delicious.
Blame my iPad for the typo ??
I miss the afl on ten. They did a good job of their coverage with before the game and the fifth quarter. I don’t think 7 do that good a job with their coverage. The only good thing they have done is add the front bar but it needs a better timeslot on Thursday nights when there is no afl.
do you think they will ditch 11?
Yep. It was the Murdoch decision to pull out of bidding with seven for afl rights and pull out of the biding for the voice that has put the network in this position. Those to programs would have kept eyeballs on ten throughout the schedule. Well done Murdoch!!
Surely the ratings would have sounded the alarm bells?
Here’s a clip from NZ TV3’s Nightline show in 1990, when they called in the receivers barely six months after going to air youtu.be/wWEiA6tvTf4
I don’t watch Ten much but I feel very sorry for those who will be losing their jobs. Just like Telstra who has just announced that they will be cutting thousands of jobs. What a sad world we are living in. Back to the topic, given that TV viewership is on the decline, would it be better to just have two commercial networks? I feel that since the introduction of all these secondary channels, everything has been ‘diluted’ and filled with repeat of programs that have just been aired after a few days.
Not sure two major channels would surfice. I think some of the ‘off’ channels could go.
In the UK there are more free-to-air channels now than ever before and new ones seem to pop up all the time. A lot of them might be niche market channels or cheap shopping channels, and Australia would never hope to get the same number of channels as the UK has (particularly as our government has sold off most of the broadcast spectrum) but it does demonstrate that there is a market for free-to-air television with operators who can be a bit innovative.
10 reasons why its not looking good
– Breakfast launched
– Launching The Shire, EDN, I Will Survive
– David Mott resignation
– Loss of 100 jobs in Nov 2012
– James Warburton dumped as CEO in 2013
– Rebooted Early News, Morning news
– People not Wake Up to this show in 2013
– 150 jobs gone in May 2014 – International bureaus
– All news bulletins gone (except the 5PM News)
– Ratings for TBL in 2017
What will happen to up coming tv shows? I’m particularly concerned about The X-Files which airs on TEN, and has more new episodes returning probably early next year. Will they air on TEN, or will another network show it? I hope it isn’t delayed.
I too wonder about what happens to future seasons of the shows I’m currently watching. I’d be sad to give some of those shows up.
There was a lot of high-cost programming the didn’t deliver the numbers The Biggest Loser, Survivor, Shark Tank and even MasterChef – which rated okay but cost the a lot of $$$$$
a 50% loss of the USA content is a sad point. I wonder what will happen to the ones that get canned? Can another tv station pick them up?
I’d worked at Ten for several years before the overnight coup/takeover at the end of 2010 by Lachlan Murdoch and James Packer. It was a truly terrific place to work but literally overnight, everything (including the mood) had changed for the worse. Prior to their takeover, Grant Blackley had kept the network alive, profitable and along with genius/brave programmer David Mott produced absolutely terrific, often groundbreaking content. First on the Murdoch/Packer agenda was the sacking of almost 20% of the workforce along with the removal of Blackley and Mott. In answer to “who killed Channel Ten?” – look no further than these two culprits.
Totally agree. But was it profitable under grant blackley?? Murdoch definitely is responsible for tens position now and its share price. It was over $2 per share before Murdoch stepped in.
What happens to all their programs that get aired?
Right now? Nothing, it’s business as usual.
If the network was going to go dark, that would be months or even possibly years away.
The extension of financing on the $200 million loan was to secure Ten’s operations past Christmas, so if anything is going to happen it will be well into the new year.
Most of their successful programs/franchises such as neighbours, I’m a celebrity, masterchef, offspring, the wrong girl, and the biggest loser will probably be picked up by other networks or foxtel. I’d imagine gogglebox would stay on foxtel exclusively.
Nothing will happen (as far as your TV screen is concerned) this year in any case. I’m sure it will be a big business/TV story for the rest of the year and it will be interesting to see how it all plays out.
Biggest Looser – A successful franchise???
50% of the usa content is going to be huge loss…for me anyway.
What now?
10 will still be running as normal.
if you’re to believe all the comments on Facebook (a story about this on the Sunrise fb page, in particular) apparently “The Project” is to blame for channel 10’s woes… wow!!
No, thats rubbish.
Yep, its unbelievable. Can’t get over the amount of people that actually think its solely the fault of The Project, in particular, Waleed Aly. *(shakes head)*
Waleed Aly is probably one of my favourite tv personalites and he brings brains and conversation to the show, just like Charlie used to! without that, it would Just be Rove Live panel style! can’t believe how many ignorant people hate Waleed just because he is a muslem.
Hete is a stong word. And sounds like a huge generalization to me. I don’t dislike him because he is Muslim at all. I dislike hime because he pushes his biased un balanced opinions down our throat. I dislike andrew bolt for the same reason as I am sure many others do to. And he ain’t a Muslim.
Comments on Facebook are most people’s biggest source of fake news and the biggest problem for people understanding facts and reality. Never ceases to amaze me what people will believe in reading comments on Facebook.
Oooh! I thought everything on fb was true. Lol. Makes for interesting reading though. ?