Seven Network chairman Kerry Stokes apologised to shareholders at the company’s AGM today after delivering news that first half earnings before interest and tax were expected to be 20% down on the same period last year
Stokes said Seven’s broadcast television business did not meet its financial goals “primarily because we were not competitive in programming over the past twelve months”.
“Our ratings performance impacted on our company’s revenue growth and market share and as a result, profit,” Stokes said.
Stokes said that as a result the company expected its full year profit to be less than last year despite a predicted improvement in the second half of this financial year.
He said that Seven’s programming strategy had been unsuccessful and laid some blame at the feet of the American studios it has contracts with.
“Clearly the strategy did not deliver—especially in the first six months of the 2004 television year,” Stokes said.
“The studios we have contracts with have not, until this new season, delivered us outstanding product. We have responded to this lack of American product with the commissioning of Australian produced programming in addition to what was budgeted for.
“We have not made this investment in programming without the expectation that it will deliver the benefits for us in the first half of the 2005 TV season, and we expect it will continue to be an extremely competitive market.”
