Murdoch blames ‘‘poor execution’’ for Ten's woes
Channel Ten’s chairman Lachlan Murdoch has blamed ‘‘poor execution’’ of the channel’s programming schedule and a weak advertising market for the broadcaster’s recent troubles.
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In documents lodged with the ASX this morning ahead of the broadcaster’s annual meeting in Sydney, Mr Murdoch offered no support for his embattled chief executive, James Warburton.
'‘Poor execution of our spring programming schedule, compounded by a weak advertising market, has negatively impacted our results,’’ Mr Murdoch said in a statement.
‘‘The Board has taken additional steps to secure and build our business, including further reducing costs while improving our programming schedule.’’
Ten said it has implemented more cost cutting and launched a $230 million offer of new shares in response to its recent poor performance.
Mr Warburton said advertising market conditions and Ten’s revenue performance had continued to deteriorate since the company posted a $12.9 million full year loss in October.
‘‘We will continue to take costs out across the business whilst maintaining our programming schedule,’’ he said in a statement.
Previous cost cutting in Ten’s newsroom has resulted in 100 job losses.
This morning the company said it would further reduce costs in its programming, administration and news and operations divisions.
Its Breakfast and Ten Morning News programs have been scrapped, while content agreements have been improved to increase rights and reduce costs, the company said.
The new measures are expected to reduce costs in fiscal 2013 by about $35 million to $360 million, although they will result in one-off pre-tax costs of $12 million.
Ten said its revenue share since the Olympic Games was at historical lows, and the outlook for advertising conditions was uncertain.
But the company expects its new programming schedule to underpin improved revenue share.
Ten will offer existing shareholders four new shares for every five they hold at 20 cents each, with the aim of raising $230 million.
Ten shares last traded at 32.5 cents each.
AAP with BusinessDay