Pacific Magazines ailing financial results are a result of its investment in overhauling websites for 12 titles and the launch of six new e-commerce sites, following its decision to bring its digital assets in-house, which meant the publisher had to solely rely on its print assets for most of the year.
PacMags saw a drop in revenue falling from $220.1 million last year to $201.2m for the current year, with an EBIT of $9m. It reported a drastic 56% decline in earnings and a 17% drop in advertising revenue.
Zavecz blamed the poor revenue on a lack of digital assets available, adding there has been a heavy investment in new digital products and having complete control of titles.
He said PacMags has been working at a disadvantage in the last financial year, but expects to reap the benefit of the new owned assets in the next 12 months.
“The first thing to recognise is that for the majority of the year we did not have our digital assets all in place. They came from March onwards when we brought back our big websites for our big brands,” he said.
Addressing investors at the Seven West Media presentation on Tuesday, Zavecz said the deterioration of advertising revenues in the second half where when the business was "virtually fighting with one arm behind our back" with only print assets.
"We now go into the next 12 months fully armed with a very strong proposition in those key consumer and advertiser categories," he said.
Since the business announced in March it would end its arrangement with Yahoo7, it has launched web makeovers for Marie Claire, Who, Women’s Health and more.
Last week, it announced the launch of Foodiful, which commercial director Prue Cox told AdNews will be a direct competitor to NewsLifeMedia’s Taste.com.au, and Zavecz says will enhance the publisher's footprint in the FMCG market.
Seven West Media is looking to acquire News Corp’s The Sunday Times newspaper masthead and Perth Now digital products noting that if it goes ahead, it will look to grow both brands.
Seven West Media's joint venture Yahoo7 delivered total revenue of $91.7m. Verizon recently acquired Yahoo with Seven noting it will have an opportunity before the final completion of the deal to consider options with the new owners.
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