Seven West Media has reported an almost 14 per cent drop in first-half of FY18-19 earnings and profit thanks to lower advertising revenue.
A fall in ad evenue across all of Seven West Media’s assets, including its television network, newspaper, and magazines has been attributed to a decline in TV advertising, digital advertising pressure and publishing advertising.
Seven West Media MD and CEO Tim Worner said: “We promised to improve our ratings and revenue share this half as we focused on the core and we have delivered, despite a softer second quarter advertising market.
“We continue to transform our operating model at pace, driving greater cost efficiencies and increasing our group cost out targets. We absorbed the new cricket costs, maintaining a flat cost base in the half.
“At the same time growth in new revenue streams is outstripping our expectations with 7plus, 7Studios and our investment portfolio all delivering strong growth.
The television broadcaster an publisher, controlled by Kerry Stokes, has forecast annual underlying earnings before interest and tax growth of flat to five per cent, increasing its cost savings target to $30-40 million.
Seven’s net profit dropped to $86.2 million for the six months to December 29, down from a restated $100 million for the same period a year earlier.
First-half underlying EBIT fell 4 per cent to $146.8 million, hurt by a 1.5 per cent fall in revenue to $797.4 million.
Seven West Media owns TV network Seven and also publishes The West Australian newspaper and other magazines including Marie Claire, New Idea and Men’s Health.
Seven revised its annual cost savings target guidance to $20-30 million in November from its initial target of $10-$20 million.