In the first half of FY25, Seven West Media’s total TV advertising revenue was down 6 per cent in an ongoing soft market (-5.4 per cent) and major sporting events, including the Olympics.
It follows a few years of steady decline for the broadcaster, with group revenue seeing a 5 per cent decrease in the 2023 fiscal year, resulting in $1.4 billion, with net debt climbing to $301m. Earnings before interest, taxes, depreciation and amortisation was $187 million, down 33 per cent in 2023.
For the half year to December, Seven reported a 6 per cent drop to $727 million in revenue.
The media group has been tightly managing costs, which were down 2 per cent to $635 million.
The decline is partly attributable to major one-off sporting events, for instance, the Olympic Games on Nine this last half.
Seven did see some more positive numbers, with its 7plus Sport and 7plus First driving audience and revenue momentum into the second half of FY25. Total TV audiences were up by 1.5 per cent and growth in BVOD (+43 per cent) offset a modest decline in linear (-1.8 per cent).
Seven increased total TV revenue share to 41.5 per cent (+0.5 points), a feat for the non-Olympic broadcaster.
Costs were down by 2 per cent, with full-year costs tracking to guidance of ~$20-$30m down YoY.
Net cash flow before temporary and capital items of $52 million, down by 25 per cent.
Seven shared that the second half of FY25 is tracking to benefit from AFL growth and the federal election, with the broadcaster expecting to see modest growth.
“Seven West Media’s H1 FY25 results reflect the ongoing soft total TV advertising market and the impact of major one-off sporting events. Mitigating the full impact of these revenue headwinds was an increase in our total TV revenue share to 41.5 per cent (up 0.5 points) and the benefits of our year-on-year operating cost savings initiates,” SWM managing director and chief executive officer, Jeff Howard said.
“Seven’s total TV audiences are up 1.5 per cent year on year, excluding these one-off sporting events. Our content strategy successfully mitigated the Olympic Games impact in the first quarter and the launch of 7plus Sport commencing with the AFL Grand Final drove a step change in audiences as the first half progressed. Total TV remains strong and more relevant than ever with 43 per cent audience growth on 7plus more than offsetting the modest decline in linear audiences of 1.8 per cent.
“Audiences continue to be attracted to Seven’s sport, news, tentpole programs and library content on 7plus. We grew audiences’ year-on-year for AFL, cricket (Tests and Big Bash League), My Kitchen Rules, Home and Away, The Front Bar and the TV WEEK Logie Awards year-on-year. “7plus Sport is delivering new high value audiences in addition to our growing broadcast viewership. The AFL Grand Final attracted more than 4 million viewers, the largest audience since 2016, including a 44 per cent increase in audience on 7plus to 654,000. Audiences for the India Test Series were up 39 per cent year on year, and the BBL was the highest rating in five years with total audiences up 21 per cent year on year”.
