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Highlights:
- 33% Drop in EBITDA: Seven West Media (ASX:SWM) reported a 33% decline in earnings before interest, taxes, depreciation, and amortisation (EBITDA) for FY 2024, totaling $187 million, due to a challenging economic environment and rising costs.
- Revenue and Market Share: Group revenue fell by 5% to $1,415 million, while the total TV market declined by 8.2%. Despite this, Seven West Media increased its total TV revenue share to 40.2% and saw a slight growth in linear TV audiences.
- Cost-Cutting Measures: The company implemented $25 million in cost reductions in the second half of FY 2024 and plans to expand these initiatives in FY 2025 to improve future performance.
Seven West Media (ASX:SWM) has reported a 33% drop in earnings for the fiscal year 2024. The significant decline highlights the challenges the media company has faced over the past year, as shifting market conditions and increased competition have impacted its financial performance.
Seven West Media Ltd (ASX:SWM) has reported a one-third reduction in earnings for the fiscal year 2024 compared to the previous year, attributing the decline to a challenging economic environment and a slight increase in operational costs.
In its financial report released today, the company revealed that EBITDA (earnings before interest, taxes, depreciation, and amortisation) dropped by 33% to $187 million for FY 2024. Group revenue also fell by 5%, totaling $1,415 million for the year, while the total TV market experienced an 8.2% decline.
The downturn in the TV market was more pronounced in the first half of the fiscal year, with a 9.1% slump, but this moderated to a 7.2% decline in the second half. Despite these challenges, Seven West Media managed to grow its total TV revenue share by 40.2% over the year, with a slight 0.5% increase in linear TV audiences.
SWM's Managing Director and Chief Executive Officer, Jeff Howard, commented on the results, acknowledging the difficult market conditions. He noted that while audience and revenue share growth helped offset some of the market weakness, a 2% rise in costs contributed significantly to the 33% drop in EBITDA.
Howard also highlighted the company’s response to these challenges, including $25 million in cost-cutting measures implemented in the second half of FY 2024, with plans to expand these efforts in FY 2025 to enhance future performance.
He further noted that the weak economic environment led to an 8.2% decline in the total TV advertising market compared to FY 2023, but SWM was able to partially counteract this by increasing its revenue share of the total TV market to 40.2%.
Despite the 2% rise in costs, bringing total expenses to $1,228 million, Howard emphasized that the Group is taking decisive action to address this issue and drive improved performance moving forward.
