Seven West Media reported a strong rebound in advertising revenue in the three months to June.
Advertising revenue including BVOD is estimated to grow more than 45% in the quarter compared to the same period in 2020, during the depths of the economic fallout from the pandemic.
"Early indications suggest ongoing positive momentum into the September quarter," the company says in a trading update.
Seven's market report fits with media agency bookings, which in April soared by 39.7% year-on-year to $584.4 million, according to the SMI (Standard Media Index). Television was up 44%.
Seven's BVOD consumption continues to grow strongly, with 62% growth in registered users on 7plus year-to-date, compared to market growth of 50.7%.
7plus has secured a 37.2% revenue share in the 10 months to April, a 5.8 percentage point increase on the previous corresponding period.
Digital earnings continue to grow strongly, with Seven digital expected to contribute earnings before interest, tax, depreciation and amortisation (EBITDA) of more than $60 million in the current financuial year, up 130% year-on-year.
Digital earnings are expected to more than double in next financial year.
The group now expects underlying EBITDA to be between $250 million and $255 million in the year to June compared to analyst consensus of $235 million to $245 million.
Net debt at the end of the 2021 financial year is expected to be between $240 million and $250 million.
"The start of the 2021 calendar year was the Seven Network’s riskiest period in the schedule, with two new unknown formats which had mixed success," the company told the ASX.
"Since April, Seven has been increasing its television audience share year-on-year across key demographics.
"Seven has won 12 of the 24 weeks in total people so far in calendar 2021 and is on track to win a 13th week. For the ratings year, Seven has won seven out of 16 weeks so far and is one track to win an eighth week.
"With ratings comes revenue: in April, the Seven Sales team delivered the #1 linear TV revenue share."
Seven is highly confident in Seven’s schedule for the next six months, with the Olympic Games Tokyo 2020 and the Ashes Test series.
In February, Seven West Media reported a half year net profit after tax of $116.4 million on group revenue of $644.2 million, down almost 10%
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