‘Short’ Ad Market Drives Down Profit For Seven West Media

‘Short’ Ad Market Drives Down Profit For Seven West Media

Seven West Media (SWM) has reported a fall in its full-year profit and forecast a bleak outlook for television advertising over the next 12 months.

This morning the media giant announced an underlying profit of $207.3 million for the 2015-16 financial year – down 0.9 per cent on the previous 12-month period – while its revenue eased by 2.8 per cent to $1.7 billion.

Looking at SWM’s advertising revenue for each of its divisions, Seven experienced a decline of 5.8 per cent to $1.1 billion in FY16, while The West Australian recorded a 16.5 per cent fall to $144.6 million, which the group said was “exacerbated” by current economic challenges in WA.

Meanwhile, Pacific Magazines’ ad revenue dropped 16.8 per cent to $56.5 million, which SWM said was partly impacted by the rationalisation of the division’s portfolio.

On a more positive note, SWM’s advertising market growth in digital continued with an increase of 18.7 per cent, and revenue growth of 55.6 per cent excluding Yahoo7.

“Yahoo7 experienced strong growth in native and video advertising but was impacted by softer conditions in display,” the group said in a statement to shareholders.

SWM noted that the advertising market “remains short, particularly given the impact of the Olympic Games”.

“At this stage, Seven West Media believes the overall outlook for the advertising market over the coming twelve months will see the television advertising market to be flat to down in the low single digits, while the advertising trends experienced by the publishing assets will continue in the coming year,” the group said.

Seven managing director Tim Worner said the group was confident that the diversification of its content delivery would ease the impact of the weak market conditions.

“We expect the group’s 100 per cent-owned digital revenue to grow more than 150 per cent in the year ahead as we continue to build our digital future,” he said.

“Our strong balance sheet, our focus on efficiently managing our businesses and driving new opportunities for growth, in particular in the creation of content, provides a solid framework for Seven West Media over the coming twelve months.”

Mr Warner added that while the TV market has been going through a rebasing of its share of total advertising spend, SWM expects this trend to slow over the coming 12 months and return to growth.

“That’s what’s happened in the UK and the US. The power, reach and effectiveness of television is unmatched,” he said.

Mr Worner said the advertising industry is now conceding that it has “overdone the swing away from traditional media, especially television”.

“As an industry we’ve failed to promote ourselves effectively, focusing instead on competing intensely amongst ourselves,” he said.

“We recognise this and we recognise the need to do something about it. The new industry body, ThinkTV, is now promoting television very aggressively and you will see those efforts stepped up even further in the next few months.”




Latest News

It’s Friday Quiz Time Again!
  • Media

It’s Friday Quiz Time Again!

Take B&T's trivia quiz for your chance to win a $100 booze voucher and possible cirrhosis of a major internal organ.

by B&T Magazine

B&T Magazine
Big data technology and data science illustration. Data flow concept. Querying, analysing, visualizing complex information. Neural network for artificial intelligence. Data mining. Business analytics.
  • Marketing

SenateSHJ Launches New Trans-Tasman Practices

SenateSHJ has launched a new digital, data and insights capability designed to help clients tackle the growing complexity of communication challenges. SenateSHJ Digital, Data and Insights (DDI) will combine the firm’s existing Digital and Insights functions to create a Trans-Tasman capability focused on digital communication, and the generation and use of data to improve communication. […]

New BrandStory Format From Bonzai Allows 3x More Ad Space on Mobile
  • Media

New BrandStory Format From Bonzai Allows 3x More Ad Space on Mobile

Creative technology platform Bonzai has announced the launch of BrandStory – a new premium mobile ad format. BrandStory offers triple the ad space and 2.8 times greater time in view than single scroll ad formats, addressing the surging demand from brands worldwide for more real estate to drive real results by seamlessly intertwining awareness, exploration […]

B&T’s Search For Australia’s Greatest Ad Heads To Channel 7
  • Advertising

B&T’s Search For Australia’s Greatest Ad Heads To Channel 7

B&T went through the looking glass this morning, with editor-in-chief David Hovenden (above) appearing on Channel 7’s The Morning Show to get the general public involved in our search for Australia’s Greatest Ad. Hovenden chatted with Kylie Gillies and stand-in host Matt Doran about what makes a great ad and showcasing some of our favourites […]

by B&T Magazine

B&T Magazine
Opinion: The Tall Planner’s Kate Smither On The DBA Dilemma
  • Opinion

Opinion: The Tall Planner’s Kate Smither On The DBA Dilemma

The science is not in question – smarter people than I, with far more data, have codified it. The logic is not up for grabs…it makes sense that creating mental shortcuts to your brand keeps you at the top of your mind. Lead image: Kate Smither – Owner, The Tall Planner I wouldn’t even take […]

Opinion

by B&T Magazine

B&T Magazine
African woman using a cellphone in an office alone
  • Marketing

Ortto & Tall Bob Partner To Deliver Better SMS & MMS For Australian & NZ Businesses

Two Australian-born technology providers have joined forces to bring more power and choice to marketers in Australia and New Zealand with mobile messaging that is more local, cost-effective, and integrated. It’s a partnership that sees two Australian software companies come together to deliver a world-class mobile-first solution for marketers building data-driven, personalised, omnichannel campaigns. While […]

Slew Of New Hires At Snap Inc.
  • Media

Slew Of New Hires At Snap Inc.

Snap Inc. has announced a number of new recruits. B&T unaware if it positively impacted SEEK's share price.

Reddit Gets Playful Brand Refresh
  • Technology

Reddit Gets Playful Brand Refresh

This will be of interest to any Reddit fans, graphic designers or lovers of an orange so bright it burns the retinas.

Zitcha & Broadsign Partner To Drive Global In-Store Retail Media Market
  • Advertising

Zitcha & Broadsign Partner To Drive Global In-Store Retail Media Market

Zitcha and Broadsign have teamed up to integrate the Broadsign out-of-home (OOH) advertising platform with Zitcha’s retail media platform. The collaboration empowers retailers to maximise and monetise in-store digital display networks and enables advertising partners to easily view and book available in-store inventory and review campaign performance alongside the retailer’s other media channels. With the […]

Double Rainbouu & 7-Eleven Launch Exclusive Summer Fashion Label
  • Marketing

Double Rainbouu & 7-Eleven Launch Exclusive Summer Fashion Label

Today, 7-Eleven has announced a one-of-a-kind collaboration with the popular Sydney-based anti-resort wear label Double Rainbouu. Dropping tomorrow, December 1, just in time for summer, this limited-edition capsule will infuse the fashion brand’s rebellious spirit with a distinctly iconic 7-Eleven flavour. The unisex collection features five must-have styles comprising two signature Hawaiian shirts, a peaked cap, a bucket hat […]