Seven West Media (ASX:SWM) upgrades EBITDA guidance, shares fall

3 min read | May 04, 2022 11:39 AM AEST | By Priyanka Payal

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Seven West Media (ASX:SWM) upgrades EBITDA guidance, shares fall — Image source: © Jirsak | Megapixl.com

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Highlights:

Shares of Seven West Media Limited traded in red after the company provided a trading update today.

The media company has raised its EBITDA for 2021-22 financial year to AU$335 million and AU$340 million.

Seven West Media shares were spotted trading 2.671% lower at AU$0.637 per share on ASX at 10:29 AM AEST.

The shares of Seven West Media Limited (ASX:SWM) remained on investors’ radar on Wednesday (4 May 2022) after the company provided a trading update which upgraded SWM’s expectations for earnings before interest, tax, depreciation and amortisation (EBITDA) for FY21-22. The EBITDA has been raised from previous guidance of between AU$315 million and AU$325 million to between AU$335 million and AU$340 million.

As per the company, the earnings upgrade indicated the strength of advertising markets and the continuing success of Seven’s broadcast and digital businesses.

Seven West Media shares were spotted trading 2.671% lower at AU$0.637 per share on ASX at 10:29 AM AEST.

In the last one year, the share price of Seven West Media Limited has gained 32.71%, while the stock is up 1.11% year-to-date (YTD).

Image Source: © Stnazkul | Megapixl.com

The company believes that the recent acquisition of Prime Media Group, coupled with the winning performance of the Seven broadcast television business and the strong growth of 7plus, has made SWM a leading media house in the national total television market. Seven West Media is an ASX-listed diversified media company with a market capitalisation of AU$1.04 billion. The company has a leading market presence in content production in Australia across broadcast television, publishing as well as digital. The Group is also the broadcast partner of the Cricket Australia, AFL, Supercars, Olympics and the Commonwealth Games. The company is home to some of Australia’s well-recognised media businesses, including the Seven Network and its affiliate channels 7two, 7mate, 7flix; broadcast video on demand platform 7plus; 7NEWS.com.au; The West Australian; and The Sunday Times.

In its results for the half-year ended 25 December 2021, the Group’s revenue was up 27.2% on the prior corresponding period, while its Underlying net profit after tax (excluding significant items) grew 48% from the previous year.

Note: The company presents its financial statements in Australian dollars (AUD)

Data Source- company announcement dated 4 May 2022

Other details from today’s trading update include:

TV market remains buoyant, with the FTA market estimated to grow 4-5% in Q4 YoY after growing +6.7% in Q3 (metro & regional FTA TV)
BVOD market growth continues to be strong, up 41% in Q3
FY22 Cost guidance remains unchanged
Strong trading conditions underpins upgrade to EBITDA range to AU$335m to AU$340m (including AU$10m from Prime).

Read More: ANZ(ASX:ANZ) boosts cash profit in first half; how are shares faring?

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