Struggling broadcaster Ten Network has admitted it may need to raise cash in the next 12 months as it nears the limit on its $200 million loan.
Ten, which on Thursday unveiled a $264.4 million first half loss, says it expects to remain within the limits of its current debt facility, but that could change if television advertising revenues decline.
"If this was to occur the group will need to take appropriate actions, including raising debt or equity funding should that be required, in order to continue to operate within its existing $200m funding facility," Ten said in a statement.
The most likely source of new funding for Ten is likely to come from pay TV business Foxtel, which is considering taking a 14.9 per cent stake in the network that could reportedly see it inject up to $85 million in the network.
The third-placed free-to-air TV network's loss for the six months to the end of February was 33 times the size of the $8 million loss a year ago, but the result was weighed down by a $251 million writedown on the value of its television licence.
With that one-off excluded, the loss was not as bad as analysts had predicted.
"It seems to be significantly better than the market was expecting," optionsXpress market analyst Ben Le Brun said.
"The market was looking for a loss of about $26 million. After the one-off items it looks like it's come out with a los of $13 million."
Ten said it had improved ratings in its target 25-to-54-year-old demographic since the start of 2015 and the network had recorded its best start to the official ratings period since 2012.
Chief executive Hamish McLennan said the ratings performance had been helped by the success of new shows including I'm A Celebrity Get Me Out of Here and GoggleBox.
He said Ten's share of the TV advertising market was also growing, despite a decline in revenue during the half.
The network achieved a 20.9 per cent share of the market during the first half and a 21.8 per cent share during March, though Mr McLennan said the advertising market remained "short" and difficult to predict.
Mr McLennan said the network was also taking a "creative" approach to hotly contests NRL and AFL rights negotiations and hoped to be able to broadcast at least some games.
Rights for both football codes will be negotiated this year and the billion-dollar-plus price tags involved mean networks may look at joint-venture bids.
Mr McLennan said Ten had suffered from not having a major winter sport.
"We like the AFL, we like the NRL and we're going to see what we do over the next few months to get a bit of it," he said.
TEN'S LOSS BLOWS OUT ON WRITEDOWN
* Net loss of $264m, versus $8m loss a year ago
* Revenue of $324m, versus $332m
* No interim dividend, unchanged
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