More job losses are coming to Network TEN.
In its Full Year Financial Results presentation today CEO James Warburton said TEN has begun discussions with staff today about voluntary redundancies in a bid to reduce costs, following its company-wide Operational and Strategic Review that started in 2011.
The review will continue and expand in 2012.
It is unclear how many jobs will be affected.
The broadcaster and outdoor advertising company reported a net loss of $12.9 million for the 12 months to August 31, 2012, compared with net profit of $14.2 million in the prior corresponding period.
The post-tax loss is due to a 14 per cent decline in revenue from ordinary activities, while television earnings before interest, tax and amortisation dropped from $154.1 million to $82.4 million.
TEN said it would not pay a dividend for 2012.
“Clearly it was a disappointing result and one which the TEN team re working hard to improve. Our results reflect difficult trading conditions in the TV market, the one-off impact of the London Olympic Games and the impact of our ratings performance,” he said.
“Again it’s very clear that our revenue and ratings performance must improve….”
Warburton noted the failure of Everybody Dance Now, The Shire and I Will Survive.
“We’re not hiding from those unsuccessful programmes or indeed our ability and our need to improve. But the ratings year for 2012 has not been all bad. In January we set out our primetime schedule with particular focus on primetime early evenings, between 5 and 8pm. This year the main channel has seen 7% plus audience growth in weekday early evening in both 18-49s and 25-54s.
“On the main TEN channel, we have seen strong numbers for programs such as MasterChef Australia, MasterChef All Stars, The Biggest Loser, Offspring, Bikie Wars: Brothers In Arms, Puberty Blues, The Project, TEN News At Five, Underground: The Julian Assange Story and from our US output deals Homeland, Modern Family and NCIS.
“We have retained our #1 position in Daytime and the respositioning and relaunch of ONE back in May 2011 has boosted our audience more than 100% and so far this year our audience is up 26% on ONE.
TEN says the combination of ELEVEN and ONE ranks #1 in 16-39, 18-49 and 25-54 demos.
Warburton also flagged the importance of Timeshifted ratings from PVR views.
“In the US advertisers and media agencies are paying more attention to Consolidated ratings numbers and as an industry we feel we don’t do enough to monetise or report on those Consolidated numbers and we plan to tackle that issue here,” he said.
Next week TEN will present its Upfronts to advertisers around the country.
“Within that we will be offering clear definition around our brand and clear definition around our programming strategy.”
In other points,
- the median age of TEN viewers is 41.
- TEN says it remains in discussions with OMO on the sale of outdoor advertising group EYE.
- The launch of second-screen platform Zeebox is ‘imminent.”
Update: The ABC has also been told by several sources that Ten is planning to replace its current separate state news bulletins with a national bulletin.
It is not yet clear how many positions Ten is looking to cut around the country in total, but the ABC has been told it has asked for 22 redundancies in Melbourne (10 editorial staff and 12 from production resources), 13 in Adelaide (five from news and 8 production staff) and 23 in Brisbane (13 from news and 10 production resources staff).
Staff have been given a week to decide whether to volunteer for a redundancy, and told there may be forced redundancies if not enough people voluntarily depart.
A TEN Spokesperson has since told TV Tonight local bulletins would not be axed.