More revenue for network in Southern Cross deal
The Ten Network has renewed its agreement with Southern Cross Media in a deal that will increase the advertising revenue flow to the metropolitan broadcaster.
The three-year deal was announced to the ASX in a brief statement on Friday.
It will have Southern Cross pass on up to 35 per cent of its television revenue to Ten, an increase from 29 per cent under the previous agreement.
Ten shares closed flat on Friday at 27¢. Southern Cross stocks finished slightly lower at $1.44.
"After constructive discussions with [Southern Cross chairman] Max Moore-Wilton and his team, we have collectively achieved a fair outcome for both companies," Ten's chief executive Hamish McLennan said.
"We look forward to the continuation of our partnership with Southern Cross Media."
Mr Moore-Wilton said he was looking forward to a stronger collaboration "focused on improving Ten's national audience share and revenue-generating opportunities".
The last three-year deal expired in June but was extended by a month after talks failed.
Earlier this year, Southern Cross Media was in talks with Ten's rival Nine Entertainment about a potential affiliate deal that would have had Nine drop its regional partner WIN Corp.
The deal would have been possible only if the 75 per cent audience reach rule was lifted.
Nine confirmed this month it would pay about $340 million to buy WIN's Perth and Adelaide operations.
The deal extended Nine's audience reach to just below the 75 per cent threshold.
Ten has struggled with poor ratings, and dumped chief executive James Warburton for Mr McLennan in February. The broadcaster reported a 21.9 per cent fall in revenue and a net loss of $243 million for the six months to February. Southern Cross Media reported a first-half profit fall of 52 per cent to $45.1 million in the six months to December.