MASS MEDIA – AUSTRALIA

Seven earnings plunge but Worner bets on old media comeback

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Original article by Darren Davidson
The Australian – Page: 19 : 3-Aug-16

Shares in Seven West Media and Nine Entertainment Company fell sharply on 2 August 2016, after the former issued a profit warning. Seven has advised that its underlying EBIT for 2016-17 will be 15-20 per cent lower than previously, citing factors such as a slowdown in the advertising market and the rising cost of sports broadcasting rights. Meanwhile, Seven has booked a net profit of $184.3m for the year to 25 June 2016, following a loss of $A1.89bn in 2014-15.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, 7PRODUCTIONS, 7WONDER, 7BEYOND, AUSTRALIAN FOOTBALL LEAGUE

Fairfax suffers another $1bn newspaper cut

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Original article by Darren Davidson
The Australian – Page: 19 : 2-Aug-16

Australian-listed Fairfax Media has announced a $A989m writedown in the value of its publishing assets. This includes a $A484.9m writedown of Metro Media and a $A408.8m writedown of its newspapers in regional and rural areas. Fairfax has also begun reporting the revenue of its Domain property listings business separately from the Metro Media division. However, Fairfax CEO Greg Hywood has downplayed speculation about an IPO for Domain.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, METRO MEDIA PUBLISHING PTY LTD, DOMAIN.COM.AU, NZME LIMITED – ASX NZM, REA GROUP LIMITED – ASX REA, REALESTATE.COM.AU, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, CREDIT SUISSE (AUSTRALIA) LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, WILSON ASSET MANAGEMENT

Ten advertising share at highest point since 2012

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Original article by Lucy Battersby, Michael Lallo
The Australian Financial Review – Page: 11 : 29-Jul-16

New data shows that the Ten Network’s share of free-to-air TV advertising revenue has risen to 25.2 per cent in 2016, compared with just 20.1 per cent in early 2014. The Nine Network’s share of ad revenue has fallen from 39.2 per cent in mid-2014 to 35.6 per cent, while the Seven Network’s share has eased from 40.4 per cent to 39.2 per cent over the last two years. Ten’s Rod Prosser notes that the network’s share of ad revenue has increased for 16 consecutive months.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, MULTI CHANNEL NETWORK PTY LTD, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, FUSION STRATEGY

Guthrie’s ground rules: an ABC of inclusiveness

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Original article by Darren Davidson
The Australian – Page: 1 & 6 : 28-Jul-16

ABC MD Michelle Guthrie will be one of the speakers at the Creative Country conference in Melbourne on 28 July 2016. Guthrie will outline the need for the public broadcaster to extend its multi-platform audience reach beyond its current level of about 71 per cent. She will also outline plans to increase the ABC’s diversity in terms of both staff and content, and significantly increase the proportion of its annual budget that is allocated to content production.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, GOOGLE INCORPORATED, STAR TV, BUSINESS COUNCIL OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Fresh blood for Ten board

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Original article by Darren Davidson, Daniel Palmer
The Australian – Page: 21 : 26-Jul-16

WIN Corporation CEO Andrew Lancaster has succeeded Brian Long as a director of Australian-listed Ten Network. WIN has a 14.9 per cent stake in Ten, and the two TV broadcasters commenced an affiliation agreement in mid-2016. Meanwhile, John Klepec has stepped down as Gina Rinehart’s nominee on the Ten board. He has been replaced by Australia’s former trade minister, Andrew Robb.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, BIRKETU PTY LTD, HANCOCK PROSPECTING PTY LTD, FOXTEL MANAGEMENT PTY LTD, LIBERAL PARTY OF AUSTRALIA, NATIONAL FARMERS’ FEDERATION LIMITED

Ten tie-up delivers good news for WIN

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Original article by Darren Davidson
The Australian – Page: 23 & 25 : 25-Jul-16

RegionalTAM data shows that WIN Corporation’s ratings in the 6pm to 7:30pm timeslot have risen since it became a Ten Network affiliate on 1 July 2016. WIN CEO Andrew Lancaster has praised the level of assistance and co-operation provided by Ten during WIN’s switch from its long-running affiliation deal with the Nine Network. The data also show that Southern Cross Media Group’s ratings under its new program supply deal with Nine are lower than WIN’s ratings when it was affiliated with Nine.

CORPORATES
WIN CORPORATION PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, REGIONAL TAM PTY LTD, NATIONAL RUGBY LEAGUE, CRICKET AUSTRALIA

WPP eyes TV as YouTube falls short

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Original article by Darren Davidson
The Australian – Page: 23 : 25-Jul-16

GroupM is expected to allocate more of its advertising spending commitment to Australia’s free-to-air TV networks, after favouring YouTube in 2015. The Nine Network’s share of the media buying group’s TV budget has been reduced, while the Ten Network has secured a guaranteed share of 25 per cent, compared with between 23 and 25 per cent in 2015. Industry executives note that that digital platforms such as YouTube are under scrutiny over issues such as viewability and audience measurement.

CORPORATES
GROUPM COMMUNICATIONS PTY LTD, WPP GROUP PLC, YOUTUBE INCORPORATED, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, FACEBOOK INCORPORATED, THINK TV, IPG MEDIABRANDS

Ten shares get left behind in post-Brexit rally

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Original article by Lucy Battersby
The Sydney Morning Herald – Page: 21 : 22-Jul-16

The Ten Network’s share price has underperformed its listed peers and the broader sharemarket in recent weeks. The stock has risen by 5.5 per cent since 28 June 2016, while Nine Entertainment Company and Seven West Media have gained 10.5 per cent and 11.6 per cent respectively since the "Brexit" fallout. Ivor Ries of Morgans Financial notes that there is a global trend for advertisers to reduce their expenditure on TV advertising.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, MORGANS FINANCIAL LIMITED, LAZARD ASSET MANAGEMENT PACIFIC COMPANY, FOXTEL MANAGEMENT PTY LTD

News Corp in undisclosed $75m tax fight

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Original article by Neil Chenoweth
The Australian Financial Review – Page: 3 : 20-Jul-16

News Corp Australia’s submission to a Senate inquiry into tax avoidance in February 2015 stated that the media group believed that it fully complied with Australia’s income tax laws. Just days later the Australian Taxation Office issued a tax assessment regarding some $A75m in undeclared income from fiscal 2010. News Corp subsequently lodged an objection to the tax assessment, one day after former CEO Julian Clarke appeared before the Senate inquiry. The media group has since lodged a Federal Court appeal against the tax assessment.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN TAXATION OFFICE, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Voelte to pay ABC legal costs after defamation case fails

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Original article by Misa Han
The Australian Financial Review – Page: 2 : 20-Jul-16

A jury has rejected a defamation lawsuit against the ABC over a news story that was broadcast on "The Business" in November 2014. Former Seven Group Holdings CEO Don Voelte had alleged that the story on Seven Group’s takeover of Nexus Energy was defamatory. The story claimed that the former Nexus chairman had "dudded" shareholders and that he had "switched camps". Voelte has been ordered to pay most of the public broadcaster’s legal costs.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NEXUS ENERGY LIMITED, UNIVERSITY OF NEW SOUTH WALES