TEN has cast doubts on its ability to continue as a “going concern” unless it can refinance debts, cut costs and see relief in TV license fees.
Today it reported a $232m loss for the first half of the financial year, writing down the value of its broadcasting licence to $132 million.
The network has instigated a “transformation program” across its business, and will be reliant on its billionaire shareholders which includes Bruce Gordon, Gina Rinehart, Lachlan Murdoch and James Packer plus Foxtel to secure new funding.
“As a result of the matters disclosed, there is a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern, and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business,” Auditors PricewaterhouseCoopers noted in the director’s report.
“The directors consider that it is reasonable that the group will be successful in the matters detailed and, therefore, have prepared the financial report on a going concern basis that no such asset is likely to be realised for an amount less than the amount at which it is recorded in the interim financial report.”
This morning TEN Network Holdings reported a 2.5 per cent decline in revenue to $340 million, and recorded a $214.5 million impairment on its television licence.
The impairment charge increased a $2.4 million loss to $232 million for the first half of 2016-17.
A 2.7% metropolitan ad market share gain was “not enough to offset the weak conditions in the television advertising market and the Company’s increased content and other costs,” CEO Paul Anderson said this morning.
“TEN has commenced a transformation program to improve all aspects of the business.
“Despite The Biggest Loser: Transformed not performing, our investment in local content continues to build a strong platform, with Australian Survivor, the KFC Big Bash League and I’m A Celebrity…Get Me Out of Here! performing very well for the network.”
Conclusions from the transformation process will be advised to market at a later stage.