Long running Seven shows may be cancelled and costs for News and Current Affairs are in the spotlight, following the release of annual figures today.
Seven West Media has reported a surge in annual profit, in its first full-year result since Seven’s takeover by West Australian Newspapers. Profit jumped more than 97% to $226.9 million in the 2012 financial year.
Seven Network achieved a two per cent increase in revenue, on a pro-forma basis, to $1.1 billion, but those earnings were down 15% on last year while costs rose 9.3 per cent.
Costs are under now review across Seven West’s four divisions of television, newspapers, magazines and digital.
Seven Network CEO Tim Worner said, “I would suggest that our newsrooms will be operating differently in 2013.”
The company has faced challenges in recent months, losing half the value from its shares and a challenge to its ratings dominance by a resurgent Nine Network.
Seven West Media chief executive, Don Voelte, says the firm has performed well in a difficult time for media companies but acknowledged it will need to cut costs further.
“Our revenue markets remain challenged. We will be relentless in looking for additional synergies and will initially be focusing on four areas: the group’s back of house, our television news and public affairs unit, our magazine business and our newspaper business,” he said.
“But I guarantee you one other thing, don’t expect to read about it or see it.”
Seven West Media also announced the appointment of three new directors, including Ryan Stokes, the son of chairman Kerry Stokes, plus Michelle Deaker and David Evans.