Australia’s Ten Network has admitted ‘uncertainty’ over its future, after announcing a massive half-year $232 million loss.
Ten Network Holdings posted the multi-million dollar loss on Thursday and said its future success largely depended on securing another loan.
The network currently has a $200 million financing package from Crown Resorts casino magnate James Packer, News Corp’s Lachlan Murdoch and businessman Bruce Gordon, but it is due to expire in December.
The network, which is Australia’s third-ranked commercial TV broadcaster, said its future hung in the balance of securing another loan.
‘The group is currently seeking to secure an amended or new borrowing facility with extended maturity and expanded size,’ it said.
‘As a result of the matters disclosed, there is a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern.’
The network will need to demonstrate how it plans to improve its future earnings to ensure continued support from the three key shareholders, including Mr Packer.
The company admitted the free-to-air advertising market was a challenge in Australian capital cities, but announced things were looking more positive.
The network said the market increased by 2.3 percent in the first quarter of 2017.
But the network said it expected to report an underlying loss of $25 million to $30 million for the financial year ending September 30 if the federal government did not cut the television licence fee.
Ten’s CEO Paul Anderson publicly asked the government in February to slash licence fees imposed on the network and reform media laws.
Source: Network Ten uncertain future half-year $232m loss | Daily Mail Online
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