Ten Network Holdings Ltd

TEN Details

Ten Network Holdings Limited (ASX: TEN) announced that Mr. Mark Korda, Ms. Jennifer Nettleton and Mr. Jarrod Villani of Korda Mentha have been appointed as voluntary administrators of the Company and each of its subsidiaries. Notably, the decision follows correspondence received from Illyria and Birketu over the weekend which left the Directors with no choice but to appoint administrators. Further, the decision comes despite the groups considerable progress in realizing the potential sources of improvements to future earnings, which include, delivery of the cost and revenue initiatives identified in the transformation process currently underway; renegotiation of material programming contracts; and reduction in Federal Government imposed license fees.Moreover, with regards to the transformation process, the company has identified initiatives that are expected to have a positive impact on earnings in the order of at least $50 million in FY18 and potentially more than $80 million per annum by FY19.
 
On renegotiation of programming contracts front, although final terms have not yet been formally agreed, the company has agreed in principle to most of the commercial terms of replacement volume content supply agreements with its US studio partners. Notably, the implementation of these replacement content agreements would reduce the group’s future liabilities by approximately 50% for US content, while still allowing TEN access to the best productions of those studios over the medium term. Regarding the reduction in Federal Government imposed license fees, TEN anticipates that after the changes to regulations anticipated to be tabled in Parliament pass through the Parliamentary process, the reduction in license costs for TEN will be in the order of $22 million in FY17 and $12 million in FY18.
 
 
TEN Daily chart; (source: Thomson Reuters)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.