Seven West Media shares retreat on full-year profit decline
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More news: Shares in Seven West Media tumbled in morning trade after the media company reported a 62% drop in full-year net profit.
Shares were down 6.7% to 14 cents at midday AEST, taking losses to 17.7% over the last 12 months.
UBS analysts said the result was "maybe a touch soft", with weaker TV earnings in the fourth quarter coming as a "negative surprise".
Investors will be focused on whether the company can increase revenue to generate earnings above FY26 consensus estimates of $161 million, they said.
Seven West Media reports 62% profit slide amid soft ad market
The news: Seven West Media has reported a 62% full-year profit slide, despite second-half earnings growth, amid ongoing weakness in the free-to-air television market.
The numbers: Seven reported total revenue of $1.35 billion for the year, down 4% on the previous year and missing analyst estimates of $1.36 billion for the 2025 fiscal year, according to Visible Alpha data.
Earnings before interest, taxes, depreciation and amortisation were $159 million, down 15% on the previous year.
The Kerry Stokes-controlled media company reported statutory net profit after tax of $17 million, down 62% on the previous year, with underlying net profit after tax excluding significant items of $57 million, down 27% on the previous year.
The company said it is targeting earnings in excess of $161 million for the 2026 fiscal year, and is on track to deliver costs “at least” in line with its plans.
Seven said the market is showing signs of stabilising through July and August, with TV revenue tracking flat compared to the previous year, and momentum building into September.
The company’s advertising bookings for 7plus, meanwhile, are tracking roughly 25% up on the previous corresponding period.
Seven reported second-half earnings growth of 6%, in line with previous guidance. The company said TV earnings grew 4% in the half, with 33% growth in net profit after tax.
The company said its TV advertising revenue was down just 1% in the second half, moderated by a 41% lift in revenue on its broadcast video on demand platform, 7plus. The post federal election advertising market was weaker than expected, the company said.
What they said: “FY25 has seen Seven West Media make solid progress under our new structure to kickstart growth, in line with our strategic plan,” Seven CEO and managing director Jeff Howard said in a statement.
“It is pleasing to report that we delivered earnings growth in the second half in line with our guidance. This improved performance mainly reflects the step change in 7plus audience and revenue, which is on the verge of offsetting the revenue decline in broadcast TV.”
The source: ASX release
