The first half of the 2014 financial year have hit Seven Group Holdings Limited hard with trading revenue down 42% and EBITDA falling 47% compared to the same period last year.
However the reported net profit was up 2.77% to $263.893 million, whereas the underlying net profit was down 44% to $131.012 million.
The underlying results for the Group “were impacted by the severe downturn in demand from the mining sector particularly in relation to new equipment sales and demand for rental equipment”, according to Don Voelte in the report’s presentation notes.
The cost cutting initiatives the Group introduced last financial year were completed in November/December 2013 and saw more than 1750 positions leave the Group.
According to the presentation, reported net profit after tax saw a slight increase of 3%, going from $258 million last year to $264.7%.
However, trading revenue for the Group fell 42% to $1,577.1 million compared to the previous year’s $2,704.2 million.
EBITDA declined 47% to $213.7 million where it was at $406.5 million during the first half of the 2013 financial year.
“The result reflects the strong performance of WesTrac Australia in the prior comparative period where record revenue was achieved and the drop off in demand particularly in the mining sector which started in the second half of FY13 and continued into this half,” Voelte said in the presentation notes.
“The key thematic is the overhang that the mining boom period demand of FY12-13 created on new capital equipment and product support revenue as customers seek to take advantage of the new equipment to defer maintenance activity.”
Seven West Media had a few ups and downs this first half of the financial year regarding its revenue, compared to the same period last year.
Television saw an incremental increase of 2.6%, from $666.1 million last year to $683.7 million this year.
Newspapers and magazines were a different story though with both reporting losses.
Newspapers decreased 11.8% from $158 million last year to $139.4 million this year, and magazines went down 7.3% from $133.6 in 2013 to $123.8 million in 2014.
Within the presentation, Seven Group Holdings Limited said: “We are well positioned to deal with the challenges in our markets and have the capability to take advantage of opportunities going forward.”