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UPDATE 1-Australia's Ten plans equity boost from News Corp's Foxtel as losses mount

Published 26/10/2015, 10:40 am
© Reuters.  UPDATE 1-Australia's Ten plans equity boost from News Corp's Foxtel as losses mount
TEN
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NWSA
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SWM
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NEC
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(Adds major shareholders, shares, additional earnings, outlook)

SYDNEY, Oct 26 (Reuters) - Australian broadcaster Ten Network Holdings Ltd TEN.AX plans to raise A$154 million ($111 million) by selling shares to News Corp's NWSA.O Australian pay TV unit and other shareholders, after a licence writedown led to its third straight annual loss.

Ten, which posted a A$312.2 million net loss for the year to Aug. 31, nearly double the previous year's loss, said it would raise A$77 million each from News Corp's Foxtel and from existing shareholders by offering shares at A$0.15 each, compared to its last traded price of A$0.19.

The non-Foxtel shareholders Ten said would buy new shares included some of Australia's richest people: mining billionaire Gina Rinehart, regional television owner Bruce Gordon, News Corp executive co-chair Lachlan Murdoch and casino investor James Packer.

The free-to-air broadcaster, which trails Seven West Media Ltd SWM.AX and Nine Entertainment Co Holdings Ltd NEC.AX in the ratings, said it would use the cash to pay off a bank debt facility it has relied on as it struggles to grow revenue in an uncertain advertising market.

The firm indicated advertising conditions were improving in the near-term. Revenue grew 4.5 percent for the year to end-August but that rate would climb to at least 10 percent in the three months to the end of November.

Ten's loss was worse than analyst forecasts of A$280 million. It included a previously announced A$251 million impairment charge to reflect the reduced value of the company's broadcast licence in current market conditions.

The company's shares were in a trading halt as it conducted the rights issue. ($1 = 1.3860 Australian dollars)

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