Network Ten first half 2017: $2.4m loss despite revenue growth

TV revenue growth of 2.1% was higher than the 1.2% increase predicted

• Television revenue of $341.4 million (1H FY 2016: $334.2m), up 2.1%
• Revenue market share of 25.2% (1H FY 2016: 23.4%), an increase of 1.8 share points
• Commercial share in total people of 25.2% and in people 25-54 of 28.9%
• Television EBITDA loss of $2.4 million (1H FY 2016: EBITDA of $10.1m)
• Television costs (ex-selling costs) increase of 7.4%
• Non-cash television licence impairment charge of $214.5 million
• Net loss for the period attributable to members of $232.2 million (1H FY 2016: net profit of $13.4m)

Television revenue growth of 2.1% was higher than the 1.2% increase predicted in the company’s trading update on 16 February 2017 and was achieved in a capital city free-to-air television advertising market that declined 5.6% during the period.

The television earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $2.4 million for the six months to 28 February 2017 was in line with the guidance provided in the most recent trading update.

TEN chief executive officer Paul Anderson said: “The above-market revenue growth and increase in revenue share during the first half of the 2017 financial year was driven by investment in local content and the audience momentum TEN has built in recent years, along with the continued success of our partnership with Multi Channel Network [MCN].

“However, as we flagged in the 16 February trading update, the growth in revenue was not enough to offset the weak conditions in the television advertising market and the company’s increased content and other costs.

“TEN has commenced a transformation program to improve all aspects of the business. This whole-of-business program will improve revenues through a range of initiatives that complement the MCN relationship and will achieve significant cost savings as previously foreshadowed, most of which will fall in the 2018 financial year onwards.

“TEN continues to improve revenue and revenue share in a difficult market. The long-term focus on delivering advertisers the benefit of a world-class automated trading platform continues with MCN, with dynamic trading having commenced in February 2017. Dynamic trading offers advertisers more certainty that their advertising campaigns will reach the audiences they want to reach,” he said.

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