Seven posts $136m profit

Seven West Media has posted a net profit of $135.8 million for the 12 months to 30 June 2018 after a net loss of $744.3 million a year earlier.

SWM’s underlying expenses before EBIDTA was down 11.7 per cent to $270.9 million.

The company delivered $61 million of cost savings, including a 7% cut in staff, on an initial $40 million target.

Further cuts are expected to deliver a $10 million to $20 million net costs.

“Throughout the financial year we have maintained a single-minded focus on improving our core business with ratings, revenue and our costs savings initiatives the priority,” said Chief Executive Officer Tim Worner.

“The momentum will be driven further by our historic six year agreement with Cricket Australia that, together with AFL, locks in premium sport all year round. Our Cricket deal provides us 400 hours of premium sport across the summer which we will carry live and free across the screens of 7. We are the first FTA network to have both the BBL and Tests, meaning we can cross-promote and monetise the two most popular forms of the sport like never before.

“Having the number one network, channel and multichannel is particularly advantageous as we are now operating in a growing market. The FTA metro market has delivered its second consecutive half of growth, with the sector benefiting from industry initiatives to promote the effectiveness and ROI that only TV delivers. We expect growth to continue in the 2019 financial year.”

Seven Network broadcast and production division saw total revenue fall 1.2 per cent in FY18 to $1.3 billion.

Broadcast and digital advertising, affiliate fees and other revenue was at $1.18 billion for Seven (down 0.7 per cent), with production and distribution (Seven Studios) revenue at $89.6 million (down eight per cent).

Seven describes its production business Seven Studios as a key differentiator from its competitors and says the launch of 7plus was another key factor in having full control of consumer products.

“It gives us a fully owned and operated platform to evolve our distribution model and drive greater monetization of our content. Strategic new content deals are reshaping the acquisition and monetisation of rights and our 2.6 million monthly viewers now have more than 6,000 on-demand episodes to choose from,” Worner added.

Seven and Prime Media Group today extended their affiliate deal for 5 years, including with increased fees.

Source: B&T, Business Insider