What Happened to the TEN Network Share Price?
TEN Network Holdings Ltd [ASX:TEN] is a news content and entertainment broadcaster. TEN, ELEVEN and ONE are the company’s free-to-air channels. TEN Network also operates various online platforms like TENplay, which offers access to most content previously broadcast.
Ten shares closed higher on Friday 2.50%
Why Did This Happen to TEN Shares?
The market is still reacting to Wednesday’s financial data.
The 2014 financial year saw TEN announce its third consecutive loss. Net loss for year ending August was $168.3 million. Which is actually a 40% improvement on 2013’s net loss of $285 million.
Revenue declined 4.2% to $601.17 million. However this didn’t shock the market as it fell within the prior guidance of 3.5–4.5%
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Net debt shrunk to $80.5 million. However, this is a result of job cuts and asset sales rather than prudent financial management.
For the first time since 2011, the network experienced audience growth.
What Now for TEN Network Holdings?
Overall, the share price is down 31% for the year. On Wednesday, the stock reached an all-time low of 18 cents.
At one point today, TEN shares were down 1.50%. Bargain hunters helped the stock rally towards the close.
This company has very few upsides at present. Ten have said they plan to cut costs a further 8% this year. And to increase revenue, they will increase the amount of advertiser funded television programs.
A CIMB analyst said on Wednesday that ‘Ten has limited financial capacity to affect a material turnaround without further capital.’
There are rumours that Providence Equity — a US private equity firm — could be interested in taking over TEN.
With TEN shares trading at an all-time low, an international buyer could be the only hope for current shareholders.
Shae Smith+
Editor, Money Weekend
The post Why the TEN Network Share Price Rose Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
