We may be about to lose one of our oldest TV networks

Network Ten is in jeopardy, with its share price plunging after it reported a $232 million loss.

The company now needs to borrow up to $250 million in December – money that’s vital to helping it weather the tough TV advertising market – and its directors warned the stock market that a failure to land the loan could see the company go bust.

“There is a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the formal course of business,” the directors said in a statement to the ASX.

The company, which has been broadcasting since 1964, is home to much-loved Australian soap Neighbours, as well as Offspring, Bondi Rescue, and news entertainment program The Project. It’s Australia’s fourth-oldest TV network, after Nine, Seven and the ABC, but is now reliant on its billionaire backers, including James Packer and Gina Rinehart, to guarantee the much-needed new loan. 

The Australian reported that if the billionaires decided not to back the loan, they had the right to call in receivers to the troubled network.

The network reported 2.5 per cent revenue decline to $340 million for the six months to February 28,  and a television licence impairment of $214.5 million, which took the company to its $232 million loss for the half.

Shares in the company were trading down almost 16 percent at 37.5 cents each as of lunchtime. 

Ten is embarking on a transformation project in a bid to save the struggling network, and is also relying on the government to slash the cost of its broadcast licence fees when the budget is handed down next week. 

Ten’s rivals have been outperforming it in the ratings, with Seven’s My Kitchen Rules doing well, while it remains to be seen how Ten’s competitor reality cooking show MasterChef will do when it’s new season launches next week.

Ten’s CEO Paul Anderson admitted that The Biggest Loser: Transformed had failed to perform.

Would Network Ten going under matter to you?