The ASX questions a sudden jump in Seven West shares

Chris Pash
By Chris Pash | 12 October 2020
 

Seven West media has been sent a "please explain" notice by the ASX after a sudden jump in the price of the media group's shares.

The shares closed 17% higher on Friday at $0.135, after earlier hitting $0.145 from a low of $0.115.

The ASX also noted the “significant increase in the volume” of shares traded.

“Is SWM aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?” the ASX said in a formal notice to Seven West.

However, Seven West replied that it didn’t have any information which could explain the rise.

Nor did it have “any other explanation”. The company also confirmed that it was adhering to listing rules.

This is the second this year that the ASX has sent a please explain to Seven West. In June shares in the media group rose more than 28% to $0.135.

Again, the company replied that it wasn’t aware of any information not announced to the market which could explain the recent trading.

In August, Seven West Media posted a full year statutory loss of $162 million with revenue down 14% to $1.23 billion. Net profit after tax for continuing operations and excluding significant items was $40.8 million, down 66.1%.

However, Seven's transformation strategy is gaining momentum despite a challenging advertising market

The company has gained $170 million in cost savings and gathered $150 million from the proceeds from asset sales. Seven West now has net debt of $398 million.

Seven West says advertising market conditions remain volatile and unpredictable but the rate of decline has moderated since the June quarter.
The July free to air television market fell 15.8%. Seven delivered a strong revenue share of 39%.
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