Wednesday 4th January 2012 1 Comment
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Ticketek, Australasia’s leading ticketing company, posted a wider full-year loss in New Zealand and said parent Nine Entertainment could be forced to sell assets if it fails to meet the terms of its debt.
The ticketing company’s loss in New Zealand widened to $500,860 in the year ended June 30, 2011, from a loss of $232,454 a year earlier. Administration costs rose by $700,000. Sales rose to about $14.1 million from $13.4 million in the same period a year earlier.
The recapitalisation or the sale of assets could be necessary in order for the group to meet its Mezzanine Note Interest Suspension covenant over the next 12 months, Ticketek said in a note in its annual report.
“In order for Nine Entertainment and Ticketek to reach its covenant it may require a renegotiation of terms, waiver or a sale of assets,” auditors Ernst & Young said of the note in Ticketek’s annual report.
In December, CVC Capital Partners, which owns 70 percent of the group, failed to reach a deal with creditors to refinance A$2.6 billion of Nine’s debt, putting the ownership of the network in doubt, Reuters reported. Nine owns Nine Network Australia, ACP Magazines, Ticketek and has a 50 percent shareholding in Sky News in Australia.
Ticketek was hit with a $2.5 million fine in December after it used its market power to engage in anti-competitive behaviour. The Australian Federal Court found the company guilty of preventing last minute ticket finder, Lasttix, from supplying its services on four separate occasions.
Ticketek currently operates in New Zealand, Australia and Argentina.
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