Credit: Margarita Shtyfura via Unsplash
Seven West Media has expanded its cost cutting to $50 million from $35 million as the advertising market slows.
In a trading update, the media group said total TV advertising revenue in the September quarter was in line with the same three months last year.
However, the market slowed in October, down an estimated 12% to 13% compared to same month last year.
“On a positive note Seven’s advertising bookings for the upcoming summer of cricket are up 10% to 15% versus the prior year,” CEO Jeff Howard told shareholders at the company’s AGM.
“We expect Seven’s total TV advertising revenue to be down 2% in the second (December) quarter.”
In response to market conditions, Howard said the company has expanded its cost out program for the current financial year to $50 million from $35 million.
“We continue to look for ways to offset inflation and drive efficiency in the business,” he said.
First half group revenue is expected to be down 1%.
Costs are up 3% including AFL and Southern Cross Media TV.
Seven West is being folded into broadcaster SCA in a cashless transaction, merging two businesses with "strong positions" in the Australian advertising market across their free-to-air television, streaming, audio, digital and publishing assets.
The new group would have combined revenue of $1.777 billion and have a market capitalisation of $417 million.
“Bringing together the complementary assets and brands of Seven West Media and Southern Cross will create a truly national, diversified media organisation, one with extensive scale and reach across free-to-air television, streaming, audio, digital and publishing assets,” Howard told the AGM.
“The possibilities will bring a new energy to Seven West Media.
“Building our digital audience through both content creation and cross-promotion, we will be able to extend our story telling into new audience access points.
“For us, that could be podcasting on LiSTNR; for Southern Cross, it could be more video.
“What we can do when we put our creative minds together will be very exciting. Our news will be even more comprehensive and available everywhere. Our sport even more insightful, powered by a true audio plus video opportunity. And our ability to weave talent into storytelling across all platforms will drive entertainment to a new level.
“Our intention is simple: to build one of Australia’s leading integrated media platforms, combining world-class content creators with unmatched local and national audience reach and engagement.
“Our financial ambition is to grow the combined revenue base and find even more efficient ways of operating, in ways we can’t do on our own. Each will help drive earnings and cash flow for shareholders.
“Shareholder vote and regulatory outcomes pending, we’re hoping to be driving this hard from early 2026.”
In August Seven West Media posted a 4% drop in revenue to $1.354 billion for the year to June. January to April 2025 total TV revenue grew by low single digits, in line with the February outlook but the post federal election market was weaker than expected.
The trading update:
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