TEN 0.00% 16.0¢ ten network holdings limited

News: UPDATE 1-Australia's Ten Network warns future dependent on financing

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    SYDNEY, April 27 (Reuters) - Australia's third-largest television network, Ten Network Holdings (TEN), on Thursday said its future was dependent on financing arrangements after it reported a A$232 million ($173 million) half-year loss in a weak advertising market.

    The youth-oriented network has a A$200 million debt facility guaranteed by News Corp Co-Chairman Lachlan Murdoch, businessman Bruce Gordon and Crown Resorts (CWN) casino magnate James Packer due to expire in December.

    "The group is currently seeking to secure an amended or new borrowing facility with extended maturity and expanded size," Ten said in its financial accounts.

    "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."

    Ten's half-year results included a A$214.5 million non-cash impairment on the value of its television licence.

    The company said the free-to-air advertising market in Australian capital cities continued to be challenging but the first quarter of the 2017 calendar year had proven more resilient, with the market increasing by 2.3 percent.

    Ten said it expected to report an underlying loss before interest, tax, depreciation and amortisation of A$25 million to A$30 million for the financial year ended Sept. 30, absent any relief in television licence fees.

    Ten Chief Executive Paul Anderson in February called on the government to reduce licence fees and reform media laws.

    ($1 = 1.3376 Australian dollars)

 
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