Ten widens full-year loss

Network announces new four-year, $200m debt facility backed major shareholders after widening FY loss, declines to pay dividend.

Ten Network Holdings (TEN) has announced a new four-year, $200 million debt facility backed by its major shareholders, after widening its full-year loss.

In the year to August 31, Ten posted a net loss of $280.9 million, a significant widening on the $14.04 million loss posted in fiscal 2012.

The underlying loss for the full year came in at $5 million, missing market expectations for $1.9 million.

The group said its net loss for the year was impacted by one-off, non-recurring charges for continuing operations of $336.2 million, including a non-cash television impairment charge of $292.1 million.

Other charges included $29.7 million of charges relating to impairment of EYE US assets and onerous contracts, and other one-off restructure charges of $14.4 million.

Total revenue in the same period was $660.9 million, a sharp decline of on $754.1 million in the previous year.

Ten declined to pay a dividend.

The media group said its new debt facility was from Commonwealth Bank of Australia and was guaranteed by Ten's major shareholders associated with Bruce Gordon, Lachlan Murdoch and James Packer. 

The proposed Financing Facility will be free from financial covenants.

Chief executive officer Hamish McLennan said the network's turnaround continued to be strongly supported by its major shareholders.

“Ten would not have been able to access this source of finance from CBA on such favourable terms without the support of our major shareholders who are providing guarantees," he said.