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%
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%
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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.
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
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