“It’s Becoming A Two-Player Market” – Warburton Responds To Shareholders As Seven Announces 31% Profit Drop Amid Difficult Ad Market
Seven reported a decrease in revenue and profit year-on-year as it was hit by poor market conditions, as well as there being no Olympics and Commonwealth Games in the 2022/2023 financial year.
Highlights
- Seven reported a profit drop of 31% year-on-year
- Says it was hit by difficult economic headwinds with overall TV ad revenue down 7.9 per cent YOY
- CEO James Warburton told shareholders that TV market is now a two-player race
In its financial results, released today, the network reported that its profit after tax had dropped 31 per cent year-on-year coming in at $146 million dollars, compared to $ 211 million last year.
Its revenue was also down three per cent year-on-year, falling to $1.488 billion for 2023 financial year, compared to $1.540 billion for the previous year.
Despite the decrease in profits for the financial year ending June, Seven said things are looking to be improving.
Early trading indicates Seven underlying revenue is tracking to FY23 market trend in July and August. It is also currently pacing slightly ahead of last year in September, with Warburton saying that they are 85 per cent booked for the month.
He said the growth in September was largely driven by travel, auto, and insurance. Government spending remains down since Covid and retail and food were also down.
In an earnings call held after the investor presentation, Warburton didn’t hold back in criticising Network 10, saying that the television market is now becoming a “two-player race” with the third player “quickly evaporating” in terms of its share market.
Seven CEO James Warburton said the results were ‘solid’ given the ‘challenging’ economic conditions that the network faced over the 2022-2023 financial year.
Industry body Think TV recently announced that TV advertising revenue was down 7.9 per cent year-on-year due to economic headwinds.
Commenting on the results, Seven West Media managing director and chief executive officer, James Warburton, said: “We have delivered a solid result for the 2022-23 financial year in what was a challenging environment, primarily driven by the 7.9 per cent decline in the total TV market over FY22”.
“The market decline accelerated during the second half, driven by the macroeconomic environment. Our position as a national TV network and the strength of our digital offering continues to resonate in the market and somewhat mitigated the market decline.”
“We achieved our total TV revenue share target of 39 per cent in the first half and in the fourth quarter and we finished the year with a 38.5 per cent total TV revenue share. Our ambition to grow our underlying revenue share (excluding the Olympics and Commonwealth Games) was achieved in each quarter, with a year-on-year underlying gain of 1.2 share points thanks to the quality of our market-leading news and public affairs programming, and our stable of long-running Seven productions.”
“Operating costs have been well managed within the context of our continued investment in programming and the ongoing inflationary pressures across our business.”
“Excluding depreciation and amortisation, our costs increased by 1 per cent over the prior year to $1,208 million, which was in line with our most recent guidance and reflecting the benefit of temporary cost savings.”
As well as the difficult economic conditions, Warburton also noted that the previous reporting period (the 2021/2022 financial year) benefited from the Olympics and the Commonwealth Games.
When an analyst asked Warburton if he expected Seven’s future results to be hit by Nine taking up the Olympic games, Warburton said that given the time difference between Paris and Australia, a lot of the big Olympic events will be held at highly unsociable hours.
Commenting on the 2032 Brisbane Games, he also noted that whoever has taken up the games (Nine) will also have to take on the significant costs associated with hosting the event.
Latest News
ABC Launches Two New Channels Combining Kids, Family & General Titles
The ABC will introduce two new channels in June—ABC Family and ABC Entertains—and four new innovative digital streams that will combine the best kids’, family, and general entertainment titles. The new channels will make it easier for audiences to find the programs they love. They will showcase the ABC’s catalogue of family and entertainment programs […]
Wests Tigers Lose One Million Dollar Sponsorship Deal In Hagipantelis Fallout
The Wests Tigers have confirmed that Brydens Lawyers will end their one-million-dollar partnership with the club at the end of the 2024 season. The law firm first joined the club in 2015 and upgraded to a principal shirtfront partnership in 2016. In an official statement shared to the Tigers’ website today, it was announced the […]
Ads That Entertain And Surprise Consumers Perform Best In Asia-Pacific – WARC report
New study reveals humorous ads "entertain and surprise consumers". Here's hoping Julia Morris doesn't get any ideas.
Aussie Employees Want AI At Work And Won’t Wait For Companies To Catch Up, Study Finds
Someone has clearly told Aussie workers AI wont steal their jobs, but might help them get to the pub more quickly.
Introducing Sam, Mamamia’s New AI-Powered Programmatic Audio Offering For Brands
Mamamia one of the first indie publishers to be really playing in the AI space. Well, the only one really.
OMA Appoints Motio’s Adam Cadwallader & JCDecaux David Watkins To Board Of Directors
New appointments to the OMA board of directors today. Monthly meetings' finger sandwiches to remain strictly egg or ham.
Bastion’s Harry Roth Selected For Cannes Lions Creative Academy
Bastion's Harry Roth off to this year's Cannes creative academy. May wear his Wallabies jersey to ruffle feathers.
TV Ratings (08/05/2024): Seven Has A Huge Night As News & Quiz Shows Dominate
News & quiz shows dominate last night's TV viewing. Further proof of our interest in the Middle East & steak knives.
Network 10 Wants Government Help To Save Regional Broadcast TV
Could Farmer Wants A Wife help Network Ten out of this mess?
Royalties Generated By Aussie Artists On Spotify Reached Nearly $275M In 2023
Royalties generated by Aussie artists on Spotify in 2023 hit $275 million. Shannon Noll's contribution reached $4.45.
eBay Study: Aussies’ Growing Love For Pre-loved Fashion Soaring To New Heights
New study reveals Aussies' love of second-hand fashion. Meaning it's now very cool to smell of moth balls.
Bud Communications Expands APAC Footprint With Australian Office Launch
Singapore-based PR & content agency Bud specialises in disruptor brands, not marijuana ones as the name may infer.
Coles Group Ranks Number One In Disability Access & Inclusion
Hats off to Coles for this top work. Now if it could only get its trolleys to run straight & its pears a bit less hairy.
Is Alone Australia Coming For MAFS & Survivor?
SBS's Alone Australia proving such a hit with viewers, B&T is rather surprised the commercial networks haven't nicked it.
AFR Pulls Plug On Newspapers In WA After Printing Costs Soar
West Australians will now have to rely on That's Life & Iron Ore Weekly for their weekly print fix.
Spotify Delivers A “Masterclass” In Curating User Experiences For Listeners & Artists
As you'll read here, there's more to Spotify than meets the eye. Or, in this case the ear, it being an audible property.
REA Group Delivers Booming Q3 Performance
It's yet further proof the property market is so hot right now. Still not hot enough to save Godfrey's vacuums, however.
iProspect Reveals 2024 Level Up Committee Cohort
iProspect unveils shadow executive leadership team. Staffers warned to be on the lookout when nicking off early.
Surge In Kayo Subscriptions Helps Foxtel Offset Broadcast Declines; News Corp Q3 Revenue Flat
One thing Aussies love is sport. Yet, one thing they hate is paying for it. So, make of this news what you will.
DEPT Doubles Down On Creativity With New APAC Executive Creative Director
Global digital agency announces Brad Stevens as ECD. Says he's happy to go by 'Braddles' or the unimaginative 'Stevo'.
JCDecaux Unveils Giant Melbourne Wrap Around OOH Site
If a worrying vitamin D deficiency isn't enough to get you outdoors, then hopefully this new JCDecaux installation will.
Brazilian Ad Agency Africa Creative Releases Powerful Gay Conversion Therapy Film
The Cure sounds like the serious sequel to Hangover III, let's hope it delivers some sobering food for thought.
Spotlight On Sponsors: PGA Championship Becomes First Men’s Major To Sign Sports Betting Partner
The game of golf is a lot like Lindsay Lohan, Jägermeister or holidaying in Kuta - you never know if it's cool or not.
Mackenzie Arnold & Tony Gustavsson To Take Part In Inspiring Conversation At Vivid Sydney
Matilda's goalie & coach in conversation at this year's Vivid. Won't be conversing about Sam Kerr's ACL, however.
Smart Speakers Stung By Ad Fraud Costing Brands $1M Per Month, Says DoubleVerify
Be wary of a Nigerian sounding bloke that claims he is Kochie and pimping crypto on a smart speaker near you.
Contiki Challenges Influencers To ‘Switch On Social Travel’ In New Campaign Via We Are Social
Contiki wants influencers to give up irritating selfies on holiday by funding them to create irritating selfies. Genius.
“We Are In Our Epic Era”: Natalie Harvey On The Big Changes Coming As Mamamia Celebrates 10 Years Of Podcasting
Natalie Harvey has taken on the Mamamia CEO's chair that B&T hopes sports a mashed pumpkin vomit stain.
TV Ratings (07/05/2024) : Team USA Become First Female Team To Win LEGO Masters Australia
It's not been a great day for Australia - out early in Eurovision, crushed by the Yanks in Lego Masters.
GroupM Hires Former Amazon Ads Global Head Of Services
GroupM poaches Amazon's Mark Lomas to lead its retail media business. Says he has no opinion on Jeff Bezos' new yacht.
It’s All About The Indies! Introducing B&T’s Best Of The Best Indie Executive Creative Leaders 🎉
Indie agencies are thriving & it's mostly thanks to these industry leaders. And their delegating to the lackeys.
Introducing BrandComms.AI, Forethought Revolutionises How Brands Do Effective Creative
Marketing & strategy agency Forethought unveils new AI offering. Yet can't explain the plot to any of the Matrix films.
Independent Media Agencies Of Australia (IMAA) Announces Record 44 New Group Deals For 2024
The Independent Media Agencies rolls out even more support for its members. Alas, no signs of any discounted arancini.
After Google Search Spike, Reddit Shares Jump 14% In First Quarterly Results Since IPO
It looks like being a top time to be investing in the tech space. Defence industries & missile makers also doing well.
Gippsland Dairy Celebrates The Deliciousness Of Patience With ‘Slow Good’ Platform Via Special
Yoghurt's a lot like online dating, red wine & running marathons - you think it's good for you, but it probably isn't.
Let Them Eat Cake: Cashed-Up Professionals Are Back In CBDs And Airports And They Want Their Audis
Latest study finds the ABs are returning to offices & reveals how brands can cash in. Just not the work from home brands.
Mariah Carey Lends Her Inimitable Voice to ‘Portrait of a Portrait’, Audible’s Latest ‘Words + Music’ Installment
Think Mariah's only good for annoying the shit out of colleagues at Christmas? Think again with this new Audible work.