Network Ten Warns of Earnings Loss, Sounds Off About License Fee

SYDNEY: Australia’s Network Ten is expecting an EBITDA loss of up to A$5 million ($3.8 million) for the half-year, blaming a weak ad market and calling for the reduction of license fees.

An impairment review, including regarding the value of television licenses, will be undertaken as part of the half-year accounting process at TEN. A continuing decline in TV advertising markets, absent any relief in television license fees, will result in an EBITDA loss at TEN for the full year of between A$20 million (15.4 million) and A$30 million ($23 million).

TEN’s CEO, Paul Anderson, said: “This industry is obviously under severe duress and yet commercial free-to-air television broadcasters continue to be penalized by the world’s most expensive broadcast license fees.

“Without the investment of the commercial free-to-air broadcasters, local production will dry up, jobs will be lost and local news will be a thing of the past.

“As we have been saying for years now, the current regulatory framework is unsustainable. Without an urgent reduction in license fees to the levels paid overseas, and without reform of Australia’s archaic media laws, this sector faces a very uncertain future,” he continued.

“It is time for the government to face the reality that the world has changed. Australian media companies are competing directly for viewers and advertisers against globally dominant internet companies that are taking a growing share of advertising dollars out of this country. These companies are exempt from local media regulation or content obligations, and they don’t pay television license fees.

“We are calling for urgent action from the government and the parliament to ensure a future for the high-quality, free television service that Australians highly value and rely on,” Anderson concluded.