Embattled media company Ten Network Holdings (ASX:TEN) has posted a $264m loss in its First Half Financial Results on Thursday. Television earnings before interest, tax, depreciation and amortisation came in at $7.5m, compared to $10.1m in 2014. Television revenue came in at $309.8m, compared to the previous $315m. Television costs decreased 2.1 per cent. The company had a television license impairment of $251.2m. Loss for the period attributable to members came in at $264.4m. The company has a net debt of $92.3m. It also reported the best start to a ratings year since 2012. The company warned investors it is nearing the limits of its $200m loan and will need to recapitalise if its share of television advertising revenue falls even further.
Executive chairman and chief executive officer Hamish McLennan said the results reflected the restructuring the business underwent in 2014 in order to reduce costs and invest in prime time programming. “Network Ten was the only commercial network to increase its people 25 to 54 and total people audiences during the 2014-15 summer and achieved a 24.7 per cent revenue share in January 2015,” he said. The company’s financial results indicated that it might be forced to take significant proactive measures in the next year to stay financial viable. “A reduction in revenue compared to forecast, due to television advertising market volatility or an adverse impact on the group's market share, could result in these cash flow forecasts not being achieved,” said Mr. McLennan. "If this was to occur, the group will need to take appropriate actions, including raising debt or equity funding should that be required in order to continue to operate within its existing $200 million funding facility.”
Shares of Ten Network Holdings opened higher on Thursday, but have since retreated and are now flat around 1:05pm on Thursday. TEN has fallen 24.07 per cent in the last 12 months and 8.89 per cent so far this year.