The 10 Network recorded a loss of $227 million in the calendar year of 2019 it has now been revealed.
In documents recently lodged with the Australian Securities and Investment Commission, it was confirmed the ViacomCBS owned network racked up considerable losses throughout 2019.
The loss occurred in a year when 10 was forced to reinvent its primetime schedule and put considerable funding into several new titles including Dancing with the Stars, The Masked Singer and The Amazing Race.
The documents reveal 10 wrote down the value of its programming rights by $10.7 million in 2019. Television ratings had the network regularly finishing in fourth place behind the ABC for much of the first half of 2019, before recovering later in the year.
10 also had to invest in creating a new in-house sales department in 2019, after a previous partnership with Foxtel was dissolved.
Live sport was also a factor with 10 commencing the first year of a new five-year rights deal for the Melbourne Cup Carnival. The four-day event is costing the network $20 million per year in cash and contra after it significantly outbid Seven for the rights.
The 2019 loss included a $63.5 million non-cash impairment against 10’s television licence, and a $45.7 million impairment against non-current assets, including plant and property.
Commenting on the losses, a spokesperson for 10 told Max Mason at AFR,
“It was a year of investment at Ten as we bedded down our primetime schedule and set up our sales team for success,”
“The results of that investment are evident this year: audience and audience share growth, and TV ad market share growth.”
The report, which was signed off by the now-departed CEO Paul Anderson indicates the owners of the network CBSViacom have committed to providing 10 sufficient financial support to enable it to meet its financial obligations over the next 12 months.
In March, Beverley McGarvey was promoted to become Chief Content Officer and Executive Vice President for the Australian business, while Henriette Rothschild from KordaMentha, was appointed as interim Chief Transformation Officer.
Since the merger of CBS and Viacom late last year, 10 is now overseen from the companies UK division and is increasingly following a similar business strategy to Channel 5.
