They are a shy and retiring type at the Ten Network, reluctant to include one important set of figures in their press release for the first half results.
The fall in revenue, the impairment charge and other news, tipped in an update earlier this year, were all in the press release, but not the net loss after tax, nor was there mention in the press release of the 30% fall in "normalised" profit to $56 million (that is after the write-downs and other one off items in the latest year and in the 2008 financial year).
You had to read a separate directors’ report to find that out:
"Excluding the above amounts (and associated minority interests), normalised net profit for the period attributable to members for the 2009 half year was $56.8m (2008: $86.9m)," directors reported.
The broadcaster posted a net loss of $79.7 million for the half, compared with a $270.5 million profit a year earlier, as its earnings were wiped out by $138 million in write-downs booked during the half to account for the fallen value of TV programs and outdoor contracts in the advertising slump. Last year’s first-half profit was boosted by a one-off $183.7 million tax gain.
Ten had already slashed its interim payout by 80% to 2c a share and the news about future payouts was grim.
The bad news for shareholders on dividends was buried on page 2: the 2c a share already paid for the year is all they will get, after being paid 13.5c a share for the financial year to August, 2008.
"Shareholders received a fully franked ordinary dividend payment for 2009 of 2 cents per share on 13 January 2009.
"It is currently expected that there will be no further dividend paid in the 2009 financial year due to the impact on current year earnings from the non-recurring items recognised in this result," the company said in the statement to the ASX.
The hurt will fall greatest on the company’s 56.6% shareholder, Canwest, which is struggling to remain out of the hands of its banks.
"Group revenue was $467.6 million, with Group earnings before interest, tax, depreciation and amortisation (EBITDA) of $118.9 million" Ten said.
"Revenue for the television business Network Ten (TEN) for the first half of 2009 was $380.9 million, down 12 per cent on the same period last year, noting the absence of the Rugby World Cup and AFL Grand Final and the residual impact of the Beijing Olympics. TV EBITDA was $114.1 million (2008: $158.7 million).
"There was a 3 per cent reduction in television costs compared with the prior corresponding half year, which partially offset the decline in revenue. Consistent with previous advice, TEN is expected to deliver a reduction in costs for the full year.
"This includes the launch and ongoing operation of the Network’s new multi-channel ONE, which launched on 26 March, as well as investment in international and domestic program initiatives for TEN.
"In the Company’s out-of-home advertising division, Eye Corp (EYE), EBITDA was $5.3 million (2008: $5.5 million).
"As advised on 17 February, a review of assets and contracts in EYE and TEN resulted in non-recurring expense items being recognised, representing asset write downs and losses on onerous contracts ($123 million) and a non-recurring tax expense from the write-off of tax losses ($10 million) in EYE as well as asset write downs in TEN ($15 million).
"This first half 2009 result now includes income tax revenue of $12 million associated with the non-recurring expense items."
The shares rose 2c to 80c ahead of the release of the figures and finished there at the end of the day.
Meanwhile the planned joint venture between Vodafone Australia Ltd and Hutchison Telecommunications (Australia) Ltd (HTA) has the competition regulator concerned that it may lead to increased prices in the mobile phone market.
The ACCC said yesterday that a preliminary investigation into the venture had found that it raised competition concerns in the short to medium term in the mobile telephone and mobile broadband (MBB) markets.
"The ACCC is concerned that the removal of Hutchison as a vigorous and effective competitor will lead to increased prices for customers in the retail mobile telephony and MBB services segments in the retail mobile telecommunications services market," it said in a Statement of Issues report on its website.
There is also a concern that existing network sharing relationships between Vodafone and Optus and Hutchison and Telstra could lead to anti-competitive coordination under the joint venture.
The ACCC has called for submissions from all market participants to assist in its proper investigations and a final decision is expected on May 6.
The merger requires the approval of the ACCC and HTA shareholders. The shareholders okayed it yesterday at a meeting in Sydney.
Vodafone and HTA have said they hope to have the joint venture established by the middle of this year.
The merger of the third and fourth largest telcos in Australia will be known as VHA Pty Ltd, with each company to own 50%. But it will branded with the Vodafone name and the 3 brand, owned by the HTA will disappear.
So will that mean the "3 cricket tests" that are played each summer b
