Seven West Media is forecasting a better financial year ahead, reporting the advertising market starting to stabilise and looking stronger after a post federal election dip.
The media group saw a 4% drop in revenue to $1.354 billion for the year to June but the rate of decline in overall revenue moderated in the second half to -2%.
And total TV advertising revenue fell only -1% in the June half, driven by a +41% increase in 7plus revenue.
“From a trading perspective, the total TV ad market is stabilising … tracking flat year on year in July and August,” CEO Jeff Howard told analysts in a briefing.
“We are seeing some good momentum into September, our critical AFL finals period.”
7plus bookings are currently tracking up 25% in the September quarter.
“September is our biggest month from a revenue perspective, given the importance of AFL finals,” Howard said.
“It's still relatively early but we're pleased with the way bookings have come in for September, and we think there's an opportunity to grow … touch wood, everything else being equal.”
Howard said the feeling from conversations with advertisers “not too bad” with some “cautious optimism” around what might happen with interest rates over the next three or four months.
The tone of the language has changed since the start of the year when Howard talked of a “soft” advertising market.
Howard said Seven is making solid progress under a new operating structure to reshape the company into a better, more agile and returns focused business that can adapt to the challenges and opportunities in the changing media landscape.
The CEO, appointed in April 2024, replacing James Warburton, last year started a painful process to switch its operating model, prompted by rapid change in the media landscape.
This means cost cutting. In its latest results, the company reported operating costs down by 2% to $1.203 billion.
Statutory net profit after tax fell 62% to $17 million and underlying profit was $57 million, down 27%.
However, earnings improved in the second half, with EBITDA (earnings before interest, taxes, depreciation and amortisation) up 4% to $58 million.
And the company is targeting better than expected full year 2026 EBITDA (earnings before interest, taxes, depreciation and amortisation) to $161 million, ahead of market consensus.
A slide from Seven's briefing on full year results with market analysts:
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