Seven and Nine 1H19 update – increasing share in a declining market

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Seven and Nine 1H19 update – increasing share in a declining market

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Seven and Nine 1H19 update – increasing share in a declining market
On 19th February 2019, Seven West Media (SWM) reported its 1HFY19 earnings. Some of the key highlights from the announcement included:
  • Revenue of A$798.9mn, down 1.5% YoY.
  • Operating EBITDA of A$161.5mn, down 8.6% YoY.
  • Net Profit (excluding significant items) of A$91.8mn, down 7.8% YoY
  • Group operating expenses remained flat including cricket costs.
  • Increased cost out reduction target from A$20-30mn to A$30-40mn across FY19.
  • FY19 EBIT guidance of 0-5% growth.
  • Improved 2H performance but management expects low single digit decline in metro TV ad market for FY19
With a challenging environment for the core FTA business, traditional broadcasters must focus on improving audience share, driving new audience growth through digital content offerings and taking costs out of the business.