Seven West Media reported a 240% increase to $125.5 million in underlying net profit after tax for the year to June.
Statutory net profit after income tax was $318 million on group revenue of $1.276 billion, up 3.5% on the previous year.
Digital revenue grew 78%, driven by BVOD market growth of 55% and five percentage points in share gains during the year.
CEO James Warburton: “Our result today reflects the material progress of the changes made over the past two
The company is benefitting from favourable economic tailwinds, post the depths of the pandemic in 2020, and increasing ad spend on free to air television.
Seven West Media has also been taking a large axe to debt, a move applauded by market analysts. Net debt has been cut 40% to $240 million.
The improved TV advertising market outlook has led to a $208.5 million reversal in the TV license impairment. The better than forecast performance of the Olympic Games Tokyo resulted in a $20.6 million reversal in the Olympics onerous provision. These adjustments are included in the significant items of $277.2 million before tax.
Warburton says the positive market momentum is continuing.
“Our company has seen many changes over the past 12 months and the results have been very encouraging," he says.
'The improved performance has been driven by the relentless pursuit of the three strategic priorities we introduced in the second half of calendar 2019.
“Those priorities – content-led growth, transformation, and capital structure and M&A – sit at the core of our three-year plan and they remain our focus.
“Seven West Media is unashamedly a content company. Our content-led growth strategic pillar underpins our plan to return to market leadership across linear and digital television, with a focus on younger demographics.
“The content changes are delivering audience share gains, with growth in revenue share to follow. Returning to our historic average share is a $90 million incremental revenue opportunity.
“7plus is also a key focus. We will continue to expand our BVOD offering and examine SVOD options that are viable and make financial sense.
“Cost discipline and addressing onerous content contracts are an ongoing focus for us. This year we will also renegotiate our debt facilities to secure an improved financial position.
“All of this, particularly the improvement in our balance sheet, puts us in an excellent position to work with new partners and/or towards consolidating the media sector. We are pursuing several options in these areas.”
- Positive market momentum continued into 1H22. Targeting 40% broadcast share in the first half. 1Q revenue bookings up 60% (compared to 1Q21 market down 12%). Up 50% when normalised for AFL timing. 2Q bookings (excl AFL) currently tracking low to mid-single digits ahead of 2Q21 (2Q21 market up 19%)
- Digital earnings expected to double to more than $120 million in FY22
- WAN revenue tracking 7% ahead on July last year
- Operating expenses in FY22 are expected to be between $1.08 billion to $1.1 billion on a normalised basis, plus $94 million of one-off costs
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