Finance Finance News Ten cuts its losses but is still suffering

Ten cuts its losses but is still suffering

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Ten Network Holdings has posted an $8 million first half loss, a vast improvement on the $243 million loss it suffered 12 months ago.

The TV network lifted its revenue to $331.6 million for the six months to February 28, up 7.8 per cent compared to its first half results last year.

Chief executive Hamish McLennan said the network had its best summer ratings period since 2008, thanks to its coverage of the T20 Big Bash League cricket and the Sochi Winter Olympics, which helped lift revenues.

But the higher revenues were offset by an 8.2 per cent increase in costs, linked to the coverage of the Big Bash and the launch of new morning television programs late in November.

Mr McLennan said the network would work to rein in costs but would spend money where necessary to boost Ten’s performance.

“Strict cost control is part of Ten’s DNA and we will continue to find new ways to work smarter and more efficiently. At the same time, we will make prudent and strategic investments in content to execute our turnaround strategy.”

Mr McLennan also warned the network continued to face tough conditions in the advertising market.

“Advertising market conditions remain short, with many advertisers reluctant to commit to long-term campaigns,” he said.

“As a result, the outlook for the television advertising market is uncertain at this stage.”

The company will not pay an interim dividend.

Ten Network shares finished Wednesday at 26 cents.