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Highlights
- Seven West Media reports a 5% drop in group revenue to AU$1.415 billion, impacted by a decline in television advertising.
- Statutory net profit drops 69% to AU$45 million, with underlying net profit down 46% to AU$78 million.
- The company sees growth in its broadcast audience and 7plus streaming, with 39% increase in consumption.
- CEO Jeff Howard highlights the launch of The Nightly digital newspaper, which attracted 2.5 million unique monthly users in seven months.
Seven West Media (ASX:SWM) has provided an update ahead of its 2024 Annual General Meeting, outlining strategies to address the challenges facing the media sector while advancing its digital transformation. Chairman Kerry Stokes and newly appointed CEO Jeff Howard discussed the company’s ongoing efforts to navigate a difficult economic environment, including sluggish advertising markets and regulatory pressures.
Despite these challenges, Seven West Media has maintained a solid presence in the Australian media landscape, reaching 17 million viewers each month across its broadcast and digital platforms. Notably, the company’s coverage of popular sports, particularly the AFL and cricket, has continued to attract large audiences. The 2024 AFL Grand Final, in particular, marked a milestone, with the largest streaming audience ever for an AFL game, showcasing the growing importance of digital platforms in the company’s strategy.
CEO Jeff Howard outlined the company’s focus on evolving into a “better, digital media business” and pointed to an operational restructuring aimed at driving performance in a more competitive market. Despite these efforts, Seven West Media reported a 5% decline in group revenue to AU$1.415 billion for the year, with a notable 8.2% drop in television advertising revenue. This resulted in a significant decline in profitability, with statutory net profit after tax falling 69% to AU$45 million, and underlying net profit down 46% to AU$78 million.
Howard, however, emphasized positive developments in the company’s digital ventures, particularly the performance of its streaming service, 7plus. The service saw a 39% increase in consumption during FY24, contributing to an overall 0.5% growth in the company’s total broadcast audience. In addition, the launch of the digital newspaper The Nightly has proved successful, attracting more than 2.5 million unique monthly users within its first seven months, demonstrating the company’s growing influence in digital news delivery.
In terms of future outlook, Seven West Media anticipates a 6.5% year-on-year revenue decline for the first half of FY25, though the company expects the drop to be around 1% lower when excluding one-off events such as the FIFA Women’s World Cup and the Paris Olympics. To improve financial stability, the company plans to reduce costs by AU$20 to AU$30 million in FY25, while continuing to prioritize the development of innovative content and further expansion of its digital capabilities, including enhanced AI-driven user experiences on 7plus.
