Seven Network executive chairman Kerry Stokes has admitted that the group will suffer a year-on-year decline in advertising revenues in the current half of the year.
Speaking at the company’s AGM, Stokes insisted that the outlook for the group, which includes Western Australian Newspapers and Yahoo!7, had improved since the start of 2009.
“We see significant opportunities for growth in the performance of Seven Media Group, Consolidated Media and West Australian Newspapers,” he said.
“But while we are seeing positive signs over the past couple of months, there will still be a year-on-year decline in advertising revenues across the current half of the year.
“As you know, it has been a tough twelve months for all companies, in particular media companies -- given the challenges in the economy and the declines in overall advertising revenues.”
Stokes pointed to the strengths in Seven’s position, claiming that the network commanded a 40% share of ad income in the year to June, pointing out that Tivo is the leading digital video recorder in terms of sales and that the group has a sizeable amount of cash in the bank.
He said that good progress was being made at Western Australian Newspapers, following his successful battle to have board representation at the company.
“We have made significant progress in strengthening the fundamentals of this business over the past twelve months.”
“With a new management and editorial team, and recent circulation gains for The West, we are seeing promising signs of a revitalisation of this important newspaper and publishing company in Australia’s strongest state economy.”
Stokes also praised Prime Minister Kevin Rudd’s stimulus package, saying that the measure helped an Australian economy that was “staring over the precipice.”
He summed up by saying: “We have investments in some of Australia’s best known and best performing media brands. We have a strong balance sheet. We have cash reserves. And, we have a focused board and the best management teams.”
