Billionaires take a hit as Ten delivers another downgrade

IAN MCILWRAITH February 23, 2012

Ten Network's billionaire and sub-billionaire shareholder line-up of Gina Rinehart, Lachlan Murdoch, James Packer and Bruce Gordon cannot seem to take a trick.

Not only have they failed to pull the group's shares out of a dive (although new chief executive James Warburton has been in the chair since only the new year), yesterday they had to reveal an earnings downgrade. This was on the same day that rival Seven West Media was trumpeting its squirrel grip on free-to-air television.

No wonder Seven's owner, Kerry Stokes, another billionaire, was named as Australia's second most influential media personage in an eclectic list earlier this week.

While Seven was touting its expectations of securing 40 per cent of the free TV market, Ten's board, newly chaired by Murdoch, would have been hearing Warburton break the bad news on an expected 40 per cent fall in first-half profit from the TV business.

Warburton joined the Ten board only on February 10, the same day Murdoch replaced Brian Long as chairman.

Investors could ask whether the profit figures might have been tabled at that meeting, although this year's announcement corresponds almost to the day to last year's timing for a similar, although less drastic, profit warning. Then again, that warning included then chief executive Grant Blackley's ''immediate termination''.

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And spare a thought for former Australian Financial Review ''hack'' Neil Shoebridge, who moved in at Ten's corporate affairs department only on Monday and was yesterday fielding calls on the bleak outlook for the group.

When Insider wrote earlier this week about Murdoch's accumulated losses on his shared Ten investment, the stock was at 87¢. By close yesterday that had fallen to 78¢, shaving another $20 million or so off his original $128 million investment. Ditto Packer.

Rinehart, meanwhile, has now blown almost half her money. Her average purchase cost was closer to $1.58 a share - and is now worth $80 million less.

CEO Warburton must be happy he does not own any shares as yet.

HEALTHY DIVVIE

Seven West Media shares have clawed their way back to better than six month highs as the market warmed to its performance - and the maintenance of a 19¢ dividend.

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Insider has been known to record Seven West's downward trending stock, so it is only fair to mark the group's market worth approaching $2.5 billion during trading yesterday for the first time since slipping below that mark last June.

The 26¢ rise on the day to $3.79 still leaves the group on a tasty annualised dividend yield of just over 10 per cent if it can sustain or better the payout in the second six months - not a bad return in this environment.

Among Seven West's boasts, aside from touting itself as ''Australia's leading multi-platform media business'' for its gamut of operations in newspapers, TV, Yahoo!7 and Pacific Magazines, it claimed ''71 per cent of circulation'' in the men's lifestyle magazine category.

So far as Insider knows, its sole entrant in that category is Australian Men's Health, which is noted for its front covers of tanned men's washboard-style abdominals.

This month's edition featured ''5 billionaire secrets'', although Insider was sorry to discover that magazine proprietor Stokes was not the source - Starbucks CEO Howard Schultz was the hero.

Then again, at least the magazine's web presence on Yahoo! had some useful advice in the top 10 car etiquette tips.

''Keep your motoring manners on point with your special lady to ensure a bit of manual 'roadside assistance','' readers were advised - suggesting that in spite of the beefy covers, this mag is pitched as heterosexuals (but definitely not metrosexuals).

''Before you even think about swinging past her place, make sure your ride is fit for a good first impression. Clear out the trash, and if you've used your car recently for a bit of lovin', be sure to check the seats, windows and roof lining for evidence. Bum prints on the windscreen or scratch marks in the roof suede will send a respectable date packing before you even start the car.

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