Seven West Media has now finalised a long-form agreement with Google and signed a long-form agreement with Facebook (awaiting signature by the latter overnight).
The agreement with Google is for five years and Facebook for three years.
SWM Managing Director and Chief Executive Officer, James Warburton, said: “Completion of the two agreements confirms the strong recognition of the quality and credibility of our leading television and newspaper news brands and entertainment content. Together, they underpin our sustainability and enable us to continue to build our digital platform.
“These partnerships have been made possible by the introduction of the Media Bargaining Code. This has been an important reform led by Prime Minister Scott Morrison, the Chair of the Australian Competition and Consumer Commission, Rod Sims, Treasurer Josh Frydenberg and Communications Minister Paul Fletcher.”
SWM anticipates the digital revenue associated with the agreements will commence before the end of FY21, with the majority to be derived in FY22. Minimal incremental costs are required to deliver the revenue.
Seven also reported net debt is forecast to be approximately $270 million to $280 million by the end of FY21 following proceeds of $45 million from the Airtasker IPO in March. Total debt retirement to $195 million in the second half to date.
James Warburton said: “Our balance sheet is now in a much stronger position and our FY21 Q4 content is positioned to deliver audience and share growth, particularly among people 25 to 54 and on 7plus.”