Following Tim Worner’s abrupt departure last Friday, as expected Seven West Media has delivered disappointing full year results this morning.
With a double whammy of lower ad spends and fiercer competition, the broadcaster unveiled a 10 per cent drop in earnings coupled with a $444.5 million loss.
Seven West Media – which includes the TV assets, Pacific Magazines and West Australian Newspapers – underlying earnings fell 10.1 per cent to $243.6 million to the end of June.
Underlying net profit after tax fell 7.9 per cent to $129.3 million. Earnings (before interest and tax) fell 10 per cent to $212.1 million.
The broadcaster has already warned that its 2020 earnings are likely to be between $190-$200 million with more declines in TV advertising revenues.
Worner’s replacement, James Warburton, said in a statement the 2019 period was a “tough year in the economy and advertising markets” that had both contributed to the group’s performance.
Warburton added: “We have incredibly strong assets, and our focus moving forward is to speed up the rate of transformation while exploring opportunities for growth in our core and adjacent markets.
“We will revitalise our entertainment programming, creating momentum to engage heartland Australia and enrich the demographic mix, ensuring we are the most relevant and exciting offer to advertisers.
“We will be a hunter and explore merger and acquisition opportunities in both traditional media and nontraditional adjacencies that are positive for our shareholders,” he said.