Ten shares fell to an all time low on the ASX yesterday of 54 cents (5.4 cents before last year’s one for ten consolidation) after the company announced a date for the release of its long awaited first half results for the six months to February 28.
The close was half a cent under the previous low set in early March. In fact the shares closed on the low for a loss on the day of 3.6%.
A loss and write down of the group’s TV licences are expected to dominate the announcement on April 27, while news on the fate of the $200 million revolving credit from the Commonwealth Bank which is due on December 23 this year will also be on the agenda for those few investors still interested in the company and the shares.
In February, Ten surprised with a profit warning and downgrade for the half year and full year to August 31:
"At the TEN Annual General Meeting on 8 December 2016, the Company advised that although the advertising market remained extremely short in terms of forward bookings, TEN’s television revenue had increased 1.9% in the first quarter of the 2017 financial year. TEN’s television revenue is expected to increase by approximately 1.2% for the half year to 28 February 2017.
"TEN has continued to increase its market share in a declining advertising market, driven by the strategy of investing in prime time content, and the innovative and market-leading arrangement with Multi Channel Network Pty Ltd.
"As a result of the weak advertising market and increased content and other costs, TEN’s television earnings before interest, tax, depreciation and amortisation (“EBITDA”) for the half year are expected to be $10 million to $15 million lower than the $10.1 million EBITDA profit reported for the previous corresponding period, resulting in an EBITDA loss of up to $5 million.
"As previously advised, a rigorous cost reduction project is underway and a further update will be provided as part of the half-year results presentation. An impairment review, including the value of television licences, will be undertaken as part of the half-year accounting process.
"A continuing decline in television advertising markets, absent any relief in television licence fees, will result in an EBITDA loss for the full year of between $20 million and $30 million.”
Ten shares have tumbled from 91.5 cents, the most recent peak on February 14, two days before the shock profit warning.
