Seven West Media Limited (ASX: SWM) is Australia’s largest diversified media company having a leading presence in the magazine and newspaper publishing and broadcast television. Its biggest content brands are the Sunday Times and the West Australian. It is also expanding in the delivery of its video and publishing content beyond its digital broadcast. It is at its highest operating scale now creating more content than any time in the history of the company.
On 10th April 2019, the company announced that it has finalised the sale of its 50% stake in Yahoo7 to Verizon Media. The company will receive $20.75 million from the proceed of the sale of shares in this financial year (FY19). The entire proceeds will be received in cash. The decision of stake sale came after the company exercised a put option under the Yahoo7 Shareholders Agreement, pivoting the company to meet advertisers’ demand for integrated, holistic and cross-screen media solutions.
The company’s CEO, Tim Worner stated the stake sale has meant that the company has regained full control of its assets and brands online. It has already achieved its largest ever number of unique monthly audience of 5 million in February which is almost 20% YOY growth. This also reflects the company’s position as one of the largest and fast growing in Australia. It has also started to reach a larger audience for daily online news after the launch of 7NEWS.com.au in the past week. He also stated that there is more growth for the short-form content in a space where the company has full control.
On the other hand, for long-form content company’s 7plus achieved a 30% VPM Audience share in March, according to the latest OzTAM Video Player Measurement data (VPM). In March the YoY growth across the category stood out at +49% which made the month largest commercial free to air BVOD revenue month.
Recently there has been a noticable change in the shareholding pattern of the company. Schroder Investment Management Australia Limited (SIMAL) had sold 25,291,015 ordinary shares of the company for a total consideration of $19,725,165.49 in the period between 24 August 2016 to 19th March 2019. In addition to this , 4,325,778 shares have been transferred to other entity. With this stake sale, SIMAL is no more a substantial shareholder. Commonwealth Bank of Australia had purchased a stake in the company, making a total of 76,080,985 fully paid ordinary shares with a voting right of 5.05%.
The company’s director Teresa Dyson also bought an additional stake in the company. She bought 18,218 ordinary shares in the company on 20th February 2019 at an average price of $0.525 per ordinary share, and the deal was executed on the market. Post this purchase the total number of shares with Teresa Dyson stands at 38,218, as reported to the ASX.
On 19th February 2019, the company announced its 1HFY19 results wherein the NPAT declined by 7.8%
The company has a market cap of A$731.4 million. On the technical front, the stock price shot up by more than 6% on ASX and closed at A$0.515 after making the intraday high of A$0.517 as of 10th April 2019. On 11 April, the stock soared by 2.9%, closing at A$0.530. In the last six months, the stock has fallen by 47.18% while the YTD return stands at negative 2.83%.
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