Seven net profit lifts to $318.1m
Seven profit booms on the back of an ad lift, with 7plus revenue up 78%.
Seven West Media has reported a net profit of $318.1 million, bouncing back from the previous year’s $163.3 million loss.
Revenue rose to $1.27 billion from $1.23 billion.
Metropolitan Free to Air ad dollars lifted 25.8% in the second half of the year, up 11.5% across the whole year.
Digital ad revenue was the star performer, with 7plus revenue up 78% YOY, and market share improving too.
Seven West Media Managing Director and Chief Executive Officer, James Warburton, said: “Our result today reflects the material progress of the changes made over the past two years.
“Since 2019, we have increased EBIT and grown our digital business to over 25% of earnings. We have a new entertainment schedule that is increasing ratings across all key demographics. We were the only network to grow commercial audience share across the key demographics in the financial year, which has set us up strongly to monetise this in FY22. At the same time, we have slashed our net debt position by 57% since FY19, giving us a balance sheet to pursue future growth opportunities.
“The evolution of the digital and data side of our business has been a core element of our transformation strategy and the results are clear. 7plus revenue grew 78% in the financial year, outstripping the BVOD advertising market growth of 55%, and 7plus now has 9.2 million registered users. Seven’s digital earnings in FY21 were $60 million, up 131% on the previous year.
“A landmark milestone achieved this year was our commercial agreement secured with Google and Facebook, which was first in market and reflects the quality and value of our news content.
“(West Australian Newspapers) has grown its audience across print readership and digital, increasing circulation and subscription revenue while also transforming the cost base,” he said.
“We have reignited the Seven West Ventures strategy, with several new investments underway, and the portfolio increasing in value by 11% to $56 million.”
Seven is now targeting a 40% broadcast share in the first half of 21 / 22 with first-quarter bookings are up 60% YOY. Following The Voice, Seven will screen SAS Australia and Big Brother VIP with sports events AFL Grand Final, the Ashes series and in 2022 Beijing Winter Olympics.
“Seven West Media is unashamedly a content company. Our content-led growth strategic pillar underpins our plan to return to market leadership across linear and digital television, with a focus on younger demographics,” Warburton said.
“The content changes are delivering audience share gains, with growth in revenue share to follow. Returning to our historic average share is a $90 million incremental revenue opportunity.
“7plus is also a key focus. We will continue to expand our BVOD offering and examine SVOD options that are viable and make financial sense.”