$444m loss for Seven as James Warburton inherits big challenges
Seven to revitalise entertainment programming, make savings which do not impact on ratings, and pursue mergers & acquisitions.
- Published by David Knox
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New Seven CEO James Warburton plans to revitalise the network’s entertainment programming, make savings which do not impact on ratings, deepen the network’s demographics and explore new mergers & acquisitions (including outside media), following an annual loss of $444.5m.
The tough financial year 2018-2019 result, hit by a softer ad market and increased competition, compares with a $132.8m profit a year earlier. Tim Worner tended his resignation just four days earlier, replaced with former Seven and 10 exec James Warburton as chairman Kerry Stokes signalled a “time for change.”
Seven West Media today confirmed $1.56 billion in revenue, a 4 per cent dip year-on-year, along with a $129.3 million underlying group net profit, a decrease of 7.9 per cent on 2018.
Despite the negatives, metro revenue share grew 0.7% while Seven still claimed ratings leadership across the 2018 / 19 financial year, for the 13th year running.
Seven West Media Managing Director and Chief Executive James Warburton said: “FY19 was a tough year in the economy and advertising markets, which impacted Seven West Media’s performance.
“But we have incredibly strong assets, and our focus moving forward is to speed up the rate of transformation while exploring opportunities for growth in our core and adjacent markets.
“We will revitalise our entertainment programming, creating momentum to engage heartland Australia and enrich the demographic mix, ensuring we are the most relevant and exciting offer to advertisers.
“We will sharpen our focus on being a high-performance audience and sales led organisation, and we will redefine our working practices, becoming more efficient and effective and making savings which do not impact on ratings.
“We will be a hunter and explore M&A opportunities in both traditional media and non-traditional adjacencies that are positive for our shareholders.”
Source: Reuters
15 Responses
Hmmm maybe time for a haircut for some of their over priced and under delivering ” stars ” ?
Simple solution, give nine back the cricket rights which cost seven a packet and make some new shows. Problem with House Rules and MKR is its predictable on what will happen next or which teams are going to go.
Concentrate on local dramas again, things like Always Greener, 800 Words these were rating winners. Bring back other game shows to like Wheel of Fortune and Deal or no Deal. These are some things that might work again.
So just go back to the past?
Don’t have to, continue on with the story lines from the dramas or make new drama series. True the game shows have been done before but what is wrong with an old reliable format add in some new twists?
Hey I’m all for the odd revival / reboot / remagining and have a few title suggestions myself… but needs to be in the context of new work, not as a wholesale approach… maybe you meant that anyway.
It’s interesting that your Poll: “Which network branding/marketing most needs to hit refresh?” went up yesterday and the the results point to Seven being the one being stale in TVT readers minds (and was so before this news) and then this news happens.
Yes went up on weekend, after CEO change.
Is the financial position why their programming is so poor lately or is the poor programming causing the financial loss?
It’s stuck in a loop
“Make savings which do not impact ratings”? Like making a new broadcast facility outsourced of your own (where it was) and sacking hundreds of your own staff for it. Perplexing.
Sully a reminder caps = shouting.
Nine has Stan, Ten as All Access (FWIW) what does Seven have? I remember when Seven seemed like the network with the most going on (The One to Watch – back at the turn of the century) Nowadays their channel seems stale and old. Every show they have seems like a pale imitation of a better concept from one of the other two networks
Totally agree. I havent actually watched anything on 7 since I can remember.. =\… i does feel like the momentum is swinging to 9 and even 10. Not surprised by the results.
Disappointing result given they were in profit last year. They need to be more innovative in their programming. Having a show in prime time of dogs behaving badly is just a waste of airtime. Bringing back shows like AGT that has been on Nine and Seven before is just lazyness. Bring something new in and perhaps people will watch.
You wonder where further savings are coming from. They’ve already introduced automation in their news production, AFL had budget cuts this year, they’ve outsourced network presentation to Sydney…BCM in Melbourne looks like an empty regional station. What’s left?