$1.9B loss for Seven West Media
Seven West Media has suffered a $1.887 billion full year loss and cut its dividend for shareholders.
Seven West Media has suffered a $1.887 billion full year loss just a day after signing its mega-AFL broadcasting deal.
The group’s net loss for the year to June 27 was affected by major writedowns to the value of its TV assets, and compared to a $148.19 million net profit for 2013/14.
Profit after tax excluding significant items was $209.1 million, down 11.5%.
Revenue was 4.7% lower at $1.774 billion. Television revenue represents 72% of total group revenue.
CEO Tim Worner told shareholders the advertising market in the financial year grew 3.1%, while the metro television market dipped 1.6% as a result of a softer first half due to the federal election spend in the prior corresponding period.
Tim Worner on Television performance:
“This is our seventeenth consecutive half of being number one in ratings and revenue, which is a tribute to the dedication and consistency of the team at the Seven Network. This year we delivered a 38.5% ratings share and another 40% revenue share.
“This second half we achieved our largest ratings lead over our nearest competitor since 2011 and that is up against a home cricket world cup won by Australia, an event I perhaps do not need to tell you that will not be there next year. Yet despite this, from Jan-June this year, Seven still won all key demos: P25-54, P16-39, P18-49, P16-54 & GB+Ch and unsurprisingly, total people. 7TWO was the number one additional channel and 7MATE was the number one additional channel for 16-39s, 18-49s and 25-54s. We will be taking those leading numbers into next year’s ad negotiations.
“A large part of this success lies in our programs consistently making up the majority of the top 20 regular programs on television with 10 of the top 20 this year. A clear standout and the number one program is My Kitchen Rules and in 2015 House Rules was the highest rating renovation show.
“Our programming and production teams are planning out to the Rio Olympics and importantly beyond that very important launch pad. They are well aware that they are responsible for our biggest areas of cost – the production and acquisition of our content is being reviewed.
“We welcome the current review of the broadcast license fees by the Federal Government. We believe the Government understands that local broadcasters are seriously disadvantaged relative to over the top competitors and we are hopeful of an outcome that brings us at least closer to fees paid by broadcasters in other territories.
“We are continuing to see strong demand internationally for our programs, demand which has driven double digit growth in this division for the past four years. This year we grew program sales revenue 17%.
“In recognition of the quality of our productions we are now being commissioned by both domestic and overseas networks to produce shows. The pipeline for these commissions is growing, underpinned by the success of our overseas ventures 7Wonder and 7Beyond. This year we will produce over 700 hours of scripted, factual, kids and reality programming.
“We are investing in this area to grow these businesses, expanding our production and distribution capabilities with several new appointments. We were delighted to announce earlier today a Home and Away special event commissioned by and only available on Presto. This is another great example of extending the value of our brands across new platforms. We have also entered into an agreement with Hulu to offer Home and Away in the US.
“Foxtel has commissioned a two series deal for A Place to Call Home. 7Beyond has secured a commission in the US market: a new series for HGTV entitled My Lottery Dream Home. We are also making a major series for The Travel Channel, Boy to Man. In the United Kingdom, 7Wonder has delivered three new commissions: Lenny Henry’s Got The Blues for Sky Arts and Billy Connolly’s Tracks Across America for ITV and Over My Dead Body’ for Channel 4 in the United Kingdom.
“In terms of international sales, the local production of Border Security Canada will shortly enter its 4th season, Million Dollar Minute is in production in Vietnam, House Rules is in production in Europe, MKR continues to expand its local production footprint and we are in advanced format discussions in the US.”