Ten Calls 2019 ‘Year Of Investment’ Following $227M Losses
Network Ten was down $227 million in 2019, with an underlying loss after tax of $45.3 million.
“It was a year of investment at Ten as we bedded down our prime-time schedule and set up our sales team for success,” a Ten spokesperson told the Australian Financial Review. “The results of that investment are evident this year: audience and audience share growth, and TV ad market share growth.”
In particular, Ten upped its spending on its leading shows ‘Dancing with the Stars’, ‘MasterChef’, ‘The Masked Singer’, and ‘The Amazing Race’.
However, while the losses were partly due to increased investment in its top shows, Ten’s losses also stemmed from large write-downs on TV licences, programming contracts and rights, and costs associated with the company re-establishing its in-house sales department.
During the COVID-19 pandemic, Network 10, like most broadcasters, has experienced a fall in advertising revenues, despite greater audiences.
“The company has experienced year-on-year revenue declines between 9 per cent and 38 per cent in certain months in 2020 driven mainly by the impact of COVID-19 on advertising markets,” Paul Anderson, Outgoing CEO of Network Ten, wrote in the 2019 annual report.
“Due to the evolving and uncertain nature of this situation, we are not able to estimate the full extent of the adverse impact on the company’s operating results, cash flows, and financial position – including advertising, affiliate and content licensing revenues – particularly over the near-to-medium term.”
However, Network Ten’s parent company ViacomCBS has committed to providing sufficient financial support to Ten to ensure it can meet its financial obligations for the following 12 months.