Seven West Media has swung to a $67 million first half loss in a difficult operating market, weighed down by $165.5 million in impairments and challenging advertising conditions.
The company’s statuary loss after tax compares to a profit of $83.4 million in the prior period, with significant pre tax items including an impairment of the television license, onerous provisions and impairment of assets against content.
First half revenue was down 3.2 per cent at $772.4 million amid weak advertising markets.
Chief executive James Warburton says the company’s Seven Network was number one by television revenue share, increasing its slice of the pie by 0.4 per cent to 38.8 per cent in the first half of its 2019/20 financial year.
He said The West newspaper had launched a pay wall in the first half and was tracking ahead of expectations.
The West had delivered $7 million in cost savings and completed the integration of Community News Group.
Mr Warburton said the company was working on a number of strategic initiatives including new content strategy for the primetime entertainment schedule, which commences in April.
The strategic initiatives include the divestment of Redwave and proposed $45 million sale of Pacific Magazines, which is currently being reviewed by the ACCC.
Seven West forecasts full year underlying earnings before interest and tax to come in between $165 million and $175 million subject to market conditions and improved ratings.
Mr Warbuton said he was confident the group had the team, platform and strategy to grow the business to increase shareholder value.
Seven West’s will again refrain from paying an interim dividend.
AAP
Be the first to comment