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Australia's Ten Network posts hefty H1 loss, ad market outlook bleak
April 9, 2013 / 1:02 AM / 5 years ago

Australia's Ten Network posts hefty H1 loss, ad market outlook bleak

SYDNEY, April 9 (Reuters) - Troubled Australian broadcaster Ten Network Holdings fell deep into the red in the first-half, blaming a poor advertising market and a large TV licence impairment charge.

Ten, the country’s third-ranked network, has been struggling to find hit shows and has lost market share to top-ranked competitor Seven Network and the Nine Network.

It made a net loss of A$243.3 million ($253 million) for the first half ending Feb. 28, compared with net profit of A$14.8 million a year ago.

“It is not clear when we will see a marked improvement in trading conditions,” Chief Executive Hamish McLennan said in a statement. McLennan was just appointed on Monday.

The network, which counts some of the country’s richest people - including mining magnate Gina Rinehart - among its top shareholders, booked one-off charges of A$304.0 million. That included a television licence impairment charge of A$292.1 million. Further details about the impairment charge were not immediately available.

All Australian print and television networks are facing a tough market, with advertising depressed by weakness in consumer spending and by intensifying competition from the Internet.

“The free-to-air television advertising market is at a low point of its growth cycle, and that the company is at a low point in the cycle of its share of that advertising market,” Ten said.

It cut television costs by 10.6 percent to A$247.0 million in the first half. Its full-year television costs guidance remains at A$560 million, compared with reported 2011-12 television costs of A$595 million.

Ten shares jumped 3.4 percent to A$0.31 after the results. They have nearly halved in value over the past year.

The company has been raising capital to pay down debt. Its net debt was A$1.2 million as of Feb. 28, a reduction of A$262.0 million from six months earlier.

$1 = 0.9602 Australian dollars Reporting by Maggie Lu Yueyang; Editing by Edwina Gibbs

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