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Seven revenue down in weaker ad market

CEO James Warburton has also driven down company debt and found new TV hits.

Seven West Media has today reported an underlying EBITDA of $129.6 million and EBIT of $98.7 million, down 48.8 per cent and 53.6 per cent respectively versus the prior corresponding period.

Revenue was down by a third in the June quarter, impacted by a weaker ad market during COVID-19.

But Seven has also realised $150 million from asset sales driving down debt and there has been a further $170m in savings from initiatives actioned including the renegotiation of an AFL agreement.

SWM debt is now at $398m.

Seven West Media Managing Director and Chief Executive Officer said: “It’s been twelve months since I returned to Seven West Media and laid out our new strategy to transform the company.
We have made material progress on our transformation plan despite the challenges that COVID-19 has thrown at us. It has not changed our plan, but assisted us to accelerate the transformation.

“Our content led growth strategy which launched in June with Big Brother and was followed by Farmer Wants a Wife is delivering dramatically improved results for Seven. Combined with our daily content spine which is a dominant number 1 in Sunrise, The Morning Show, 7NEWS, The Chase, Home and Away, Better Homes and Gardens and Sport with the AFL and Horse Racing, our tentpole focus at 7.30pm Sunday to Tuesday is working, helping us win the content battle. Seven has won 10 of the last 11 weeks of ratings. Our seamless Digital strategy with 7plus has also seen us transition from a distant number 2 to a dominant number 1 in the growing BVOD market.”

Seven has flagged two more tentpoles before the end the year – Plate of Origin and SAS Australia.

“We continue to focus on transforming our business. Our objective is to establish a lean, efficient operating cost base to deliver further savings in the 2021 financial year and I am confident we will deliver our strategy and ambitions for the future. We have significant operating leverage with our lower cost base to provide greater upside on market recovery and drive significant value for our shareholders.”

The Seven Network secured a 37.4 per cent free to air revenue share in the financial year, which was impacted by limited sport and an underperforming entertainment line-up. However, we launched our new tentpole strategy in early June with the premiere of Big Brother. This delivered a substantial improvement in our ratings performance, particularly in the key demographics explicitly targeted.

Intense focus on our broadcast video on demand BVOD platform has seen 7plus dominate its competitors to become the top service in the commercial free-to-air television landscape in the final months of the reporting period.

7plus has delivered an average monthly commercial free-to-air BVOD share of 46 per cent from April to July, growing faster than any competitor BVOD service and at double the rate of market growth.

6 Responses

  1. The gobbledygook stemming from the mouths of those higher up the food chain renders me mute. For once I’d like these types to step away from their thesaurus and say, “We’ve had a crap year.”

    1. Agree, it seems like a rug shop crazy closing down sale at the moment with James. About all there is left to sell is the Cash Cow. Maybe they can auction of Kochie

  2. I am assuming that there would be some very nervous people at 7 . $162 million loss. Onerous sports rights fees and impacted income due to COVID. 7 will have to drastically change its business model. Being No 1 in the ratings does not necessarily constitute financial success or survival.

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