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Profits tumble at TEN

TEN posted a net loss of $79m yesterday for the six months to February, compared with a $270m a year earlier.

logotenTEN posted a net loss of $79.7 million yesterday for the six months to February, compared with a $270.5 million profit a year earlier. Earnings were cut by $138.4 million in write-downs to account for the fallen value of TV programs and outdoor assets in the advertising slump.

Last year’s profit was boosted by a $183.7 million tax gain, notes the Sydney Morning Herald.

The news comes as CanWest faces a critical deadline with its lenders next week as it seeks to stave off bankruptcy.

TEN said it was within its own debt covenants, and expected to meet the lenders’ conditions at the next covenant test in August.

Operating earnings fell $163.7 million, to $118.9 million, for the half. Television revenue was down 12 per cent. TEN’s share of viewers aged 16 to 39, where it leads the market, fell 5.5 per cent this year. Its key program, So You Think You Can Dance Australia had lower ratings.

Meanwhile CEO Grant Blackley said he was delighted with ONE’s launch on March 26.

“It’s something we’re very proud of,” he said.

“It’s been fully deployed from an operational sense and we have spent two-and-a-half years deploying an infrastructure and architecture … to ensure we were prepared.”

Executive chairman Nick Falloon said the cost of ONE would be less than $20 million per year and the channel was expected to break even in its first year of operation.

Source: smh.com.au, WA Today

8 Responses

  1. John, you forgot to mention:

    taken out
    Yasmins getting married
    the contest
    honey we are killing the kids
    teen fat camp
    Big brother

    And to those Australians who are now watching the biggest loser, congratulations – you have now ensured that channel ten will be playing this piece of reality crap for years to come………

  2. What?

    With such hit shows like:

    Bondi Rescue: Bali (stupidest title ever)
    Bondi Vet
    90210
    Bold & The Beautiful (when shown at 6pm weeknights)
    Don’t Forget the Lyrics
    House
    The Wedge
    Women’s Murder Club

    And the list of rubbish and poor programming in the last 12 months goes on.

  3. I think ONE revenue may struggle if the government pass laws that alcohol advertising can only be shown after 9pm.

    Previously there was a loop-hole allowing alcohol advertising to be aired in daytime only for sports coverage.

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