Seven West Media plans deeper cost cuts starting July 1 as the company pays down debt and positions for recovery.
In an investor presentation by the Seven Group, the 40% owner of Seven West, CEO Ryan Stokes says the cost out program for the media group is targeting $90 million by June 30 and another $110 million in the 2021 financial year.
The COVID-19 pandemic has had an unprecedented impact on advertising market with the metro free to air advertising market down 30.7% in April and 9.3% year to date.
However, Stokes says the management team has plans to further "deleverage the business and reposition for recovery".
Seven West's revised broadcast rights deal with the AFL will save the media group $87 million.
The sale of Redwave regional WA radio network brought in $28 million, the Osborne Park headquarters property $75 million and the sale of Pacific Magazines to Bauer $40 million.
In February, Seven West announced a half year statutory net loss after tax of $66.35 million in a "challenging" advertising market.
This soft metro TV market was then overtaken by the pandemic.
Net debt was around $569.5 million. Seven West's market capitalisation is currently $238.4 million.
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