Today, Ten Network Holdings Limited (ASX: TEN) delivered another disappointing full-year result for shareholders.
In an announcement to the ASX, Ten said that for the 12 months ended August 31, 2015, revenue increased 4.5% year-over-year to $654 million. However, the group reported a loss of $312 million, worse than a loss of $168 million a year earlier. Cash flow from operations was negative $55 million.
Despite the widened loss Ten CEO, Paul Anderson, said there were some green shoots emerging. "TEN is the only primary commercial free-to-air channel to increase its prime time audience this year and Network Ten is the only commercial free-to-air network to increase its prime time audience," he said.
Commenting on the outlook the company said, "The television advertising market remains "short" in terms of forward bookings." Despite the conditions, advertising revenue is expected to increase by at least 10% in the first quarter of 2016.
Capital raising
With $154 million of debt and just $14 million in cash, Ten took the opportunity to announce a capital raising. It said it'll conduct a fully underwritten 7-for-37 accelerated pro-rata renounceable rights issue to raise $77 million from shareholders. That means shareholders will have the right to buy seven new shares for every 37 they currently own, at a discounted offer price of $0.15. Should shareholders choose not to buy in, the underwriter will cover the shares.
Following last week's regulatory approval, Foxtel – owned by News Corp (ASX: NWS) and Telstra Corporation Ltd (ASX: TLS) – will also buy $77 million worth of shares at the discounted price of $0.15.
