MediaWorks narrows loss as Three stabilises
Broadcaster MediaWorks has trimmed its losses by two-thirds after increasing audience share and stabilising the revenues of its struggling television division.
In accounts for the year to December 2017, MediaWorks reported a bottom line loss of $5.7 million — a significant improvement on the $14.8m loss for the previous year. The result was due to stable revenues of $300m, combined with reduced programming and production costs of $98.7m, down from $104.1m.
The company has had a turbulent decade, first labouring under debts of nearly $800m after a disastrous leveraged buyout by Australia’s Ironbridge Capital, and then a disruptive tenure under chief executive Mark Weldon dominated by highprofile staff losses and leaks.
Chief executive Michael Anderson, his approach a contrast to the selfstyled disruptor Weldon, said “bold and unique are not really the two words that go with my persona” and he put this year’s result down to going back to basics.
“It’s not rocket science,” he said of restoring order after Weldon’s tenure “It was an incredibly disruptive time and people lose focus of the overall picture and they lose track of overall goals.”
Anderson said the focus for television — largely at flagship channel TV3 which has this year screened high-rating shows such as Dancing
With the Stars and Married at First
Sight — was concentrated on building out primetime slots in order to maximise the company’s targeted audience of 24- to 54-year-olds. According to a result presentation by Anderson, among this audience segment MediaWorks increased its audience
It was an incredibly disruptive time and people lose focus of the overall picture and they lose track of overall goals. Michael Anderson
share from 19.1 per cent to 20 per cent over the year.
The launch of The Project last February was a key part of this focus, Anderson said.
“Strategically we’re happy with the way it fits. Are we happy with the ratings performance as of now? No.”
The accounts also show Oaktree is, three years after taking over, still having to pour cash into the business. The fund manager tipped in $8m in 2017, following $14.5m the year before.