TEN may have to pull back from investment in programming, in order to address its financial situation, Credit Suisse has warned.
“TEN’s financial position is looking increasingly difficult,” analyst Fraser McLeish said.
“We expect the TV ad market to continue to decline, TEN’s ratings have weakened in early 2017 and a likely step up in Big Bash cricket rights costs adds to the pressure.
“There are numerous ways that TEN’s funding situation could play out, but whatever happens we expect that it will have to make some major strategic changes in order to try to return to profitability.”
TEN’s expiry of a $200m bank facility that has James Packer, Lachlan Murdoch and Bruce Gordon (but not Gina Rinehart) as guarantors, falls due in December.
There is already chatter about how TEN may be forced to address costs, including long-rumoured cuts within TEN News.
Signs are expected to improve with ratings drawcard Masterchef in coming weeks.
Source: The Australian