Ten Network says it will continue to focus on refreshing its screen content after posting a disappointing annual net loss of $12.9 million.
The broadcaster and outdoor advertiser said its ratings and revenue performance must improve in 2013 and a strategic, operating and news review was aimed at improving its business model. Ten Holdings’ chief executive James Warburton said the result was disappointing but the company had a turnaround strategy in place.
“Undoubtedly we are operating in challenging market and competitive conditions, which have impacted our revenue performance,” he said in a statement. “We have responded and secured significant cost savings in the year. We are now undertaking a strategic, pperating and news review to further reduce costs. We have also reduced our debt as a result of a successful capital raising. Many of our core programs have performed well, underpinning our confidence that our performance can be improved.”
Ten's operating revenue declined by 13.5 per cent to $865.2 million in fiscal 2012 although expenses were cut by 6.8 per cent to $771.2 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 45.5 per cent to $94 million.
The $12.9 million net loss (compared to a $14.2 million net profit in the previous year) included $23.7 million in non-recurring costs, comprised of an impairment loss on the out of home assets held for sale, the writedown of its OurDeal investment, and television employee redundancy costs.
Ten has been struggling in the ratings after lacklustre performances from shows such as Everybody Dance Now, The Shire and I Will Survive. While acknowledging that the network’s ratings were not good enough, Warburton pointed to the success of Australian programs such as MasterChef Australia, The Biggest Loser, and Offspring, and US shows such as Homeland, Modern Family and NCIS.