The Ten network has managed to grow its revenue from television in a falling market but still posted a loss of $232.19 million for the half year.
A short time ago, its shares were down 15% to $0.375.
The company says its investment in content drove television revenue up 2.1% to $341.4 million, far higher than the 1.2% rise forecast in Ten’s trading update in February.
The result came in a capital city free-to-air television advertising market, which fell 5.6% over the same six months.
However, expenses rose 6.1% to $343.8 million. The company also posted a non-cash television licence impairment charge of $214.5 million.
“The above-market revenue growth and increase in revenue share during the first half of the 2017 financial year was driven by investment in local content and the audience momentum TEN has built in recent years,” says CEO Paul Anderson.
He says the growth in revenue wasn’t enough to offset the weak conditions in the television advertising market and the increased costs, including content.
However, the first quarter of calendar 2017 has been more resilient, with the market increasing 2.3% compared with a 4.6% decline in calendar 2016.
“The market remains short and difficult to predict, despite television advertising remaining the best way to deliver positive returns on advertising spend in a brand-safe, advertiser friendly environment,” Anderson says.
The company is still forecasting an underlying EBITDA (earnings before interest, tax, depreciation and amortisation) loss for the full financial year of between $25 million and $30 million.
The half year numbers in detail: