News: Ten reining in costs as TV revenue slides

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Ten Network Holdings Limited (ASX:TEN) has affirmed its commitment to reining in costs while warning it will book a fall in television revenue this financial year. 

 

The media company says the free-to-air metropolitan television market remains volatile and its TV revenue will drop about 3.5 per cent to 4.5 per cent from last year. 

 

TV costs are expected to rise by 8 per cent over the year excluding costs from one off events such as the Sochi Winter Olympics and Glasgow Commonwealth Games. These two sporting events are expected to add an extra $55 million to Ten’s total television costs in the current financial year. 

 

The most recent cost cutting drive is only expected to flow through in the following year and Ten says it will provide guidance when releasing fiscal 2014 results in October.

 

Looking ahead the company says it remains focussed on improving ratings through managing costs to ensure it can reinvest in prime time content. 

 

Ten Network Holdings narrowed its net loss to $4.75 million in the first half of the 2014 financial year.