Seven West Media has downgraded its TV market outlook which it said fell about 11 per cent in the three months to March, exceeding the “mid to high single-digits” fall previously expected.
As reported by The Financial Review, Seven CEO James Warburton told investors at the Macquarie Australia conference on Tuesday, the total TV market would probably decline by a similar rate over the final quarter of the 2023 year.
He said that Seven has made around $15 million to $20 million “temporary cuts”.
Warburton described television as a “resilient medium” saying it often bounced back from downturns quickly.
He added that the new TV ratings system VOZ, which went live this week, as well as Seven’s deal with AFL and cricket would give it billions of minutes of more expensive advertising.
“On our expectations, we believe that the market will be down in total television circa 11 per cent for the third quarter of FY2023,” he is quoted as saying. “The market is still being relatively short and trending in a similar fashion. We believe we could expect that to continue through the rest of the second half.”
A declining market presented Seven with an opportunity, he added.
“Although we don’t know when the recovery will come, when you look at the television market, and you look at it all the way back to FY1989 as we’ve modelled, the market always comes back and comes back in a relatively strong fashion,” Mr Warburton said.
“It comes back differently in many cases … and the focus we’ve taken today on 7plus and the rights we’ve got coming, it will also give us an incredible level of upside on the way through.”
Nine’s chief executive Mike Sneesby will present an update at the Macquarie event on Thursday.
