Ten Network sees earnings boost with News Corp's Foxtel equity

Ten Network recorded almost $312.2 million full-year loss as a result of writing down its TV license but it also reported a revenue uptick by 4.6 percent to $654.1 million. Even with its third straight annual loss, the company sees hope in boosting its equity, thanks to News Corp's Foxtel.

Home to “The Biggest Loser” and “Masterchef,” Ten Network recently announced a non-cash impairment of $251.2 million linked to its TV licence. The figures were announced during the company's first half results. Ten did see improvements on interest, tax, depreciation and amortisation by as much as $12 million, compared to the $79.3 million loss the company saw in the previous year.

"Our strategy of reducing costs in certain areas and investing in prime time programming is clearly producing results," chief executive Paul Anderson said in a statement. "This year, the primary Ten channel has recorded its biggest prime time audience since 2012 and its highest commercial share since 2011."

The company's shares are under a trading halt that will continue until Thursday in light of accelerating the $77 million share placement. It also plans to raise around $154 million by selling shares to News Corp, according to Reuters. Foxtel is expected to clear around up to 15 percent of Ten's network, issuing around 513.3 million new shares at $0.15 each. This will help Ten raise the $77 million. When added to the $77 entitlement offer, then Ten will have around $154 million to use.

“The proceeds of the capital raisings will be used initially to repay the drawn amount under the existing revolving cash advance facility, with any excess funds initially retained as cash,” The Australian quoted the company.

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