Seven west media (SWM) has unveiled a trading update that upgrades expectations for earnings between 2021 and 2022 from the previous guidance of between $315 million to $325 million, to between $335 million and $340 million.
The report unveiled by James Warburton showcases Seven’s growth in the last few years and is a big win for the network, $325 million is nothing to scoff at.
The report highlighted the growth it had experienced since 2019 and looked at its achievements. Identifying that in 2019 there were some key issues the network was facing.
It was also a time that saw Seven lose to its main competitor Nine.
- Challenging market with material headwinds
- Losing ratings with stale and stagnant entertainment lineup in prime time
- Distant #2 BVOD share with minimal earnings
- Uneconomic contracts
- Growing cost base with layers of middle management
- Significant debt burden limiting growth initiatives and M&A options
By 2022, The network claims it has returned to leadership and it has fixed its balance sheet – big claims but it did win total ratings for 2021.
Now Seven claims it is:
- Capturing share across broadcast and BVOD in strong / growing advertising market
- Digital to represent 40% of group earnings
- Landmark Google and Facebook deals secured
- Leverage at 0.9x post-Prime acquisition
- Now the leading national total TV company with unmatched scale
- A report released by Seven showcases the importance of including BVOD in ratings numbers. Using its hit show
The report also proposed that BVOD can underpin growth for Total Television and ultimately drive value for advertisers.
Seven feels BVOD optimises audiences across platforms and offers unparalleled national opportunities. Basically, not everyone is tuning in to television anymore and they are looking at new ways to reach them.
Seven’s managing director and chief executive officer, James Warburton said: “The earnings upgrade reflects the strength of advertising markets and the ongoing success of Seven’s broadcast and digital businesses.
“The recent acquisition of Prime Media Group, coupled with the winning performance of the Seven broadcast television business and the strong growth of 7plus, make SWM the undisputed leader in the national total television market – a position that we plan to build on in the future.”
