Seven shares rise as HY result tracks estimates
Make us a preferred source
Make us a preferred source on Google
More news: Seven West Media shares jumped after the media group's first-half result largely met market forecasts.
Seven shares were up 4.6% to 17.3 cents by 11:25am AEDT, having climbed 15% already this year.
Revenue fell 6% to $727 million but beat consensus estimates of $723 million. Net profit after tax shrank 41% to $37 million, but held close to average forecasts of $38 million.
UBS analysts also noted that Seven expects to see modest year-on-year earnings growth in the second half of the year, compared to market expectations of a 2% retraction.
Morningstar analyst Brian Han noted that the results masked "several encouraging developments within TV, with external conditions also showing signs of recovery".
What they said: "Should be well received given guidance for return to revenue/earnings growth in 2H," said UBS analysts.
"Focus for the call will be on what is underpinning the company's confidence in this given the significant [free to air] TV advertising pressures seen in the Dec-qtr and half."
Morningstar said: "... signs of TV advertising recovery are emerging, with Seven's current March-quarter bookings up low-single-digits. Even if management's view of 'broader buoyancy' in the market is short-lived, growth in underlying audience share (43.4%) sets a solid foundation for cyclical rebound.
"Digital within TV could receive a boost from the new AFL digital rights from March, if recent benefits from cricket digital rights are any guide. 7plus digital audience was up 36% in the first half, with momentum likely to be maintained when more (and new) viewers start streaming AFL."
Seven suffers revenue fall amid ongoing TV ad market rout
The news: Seven West Media has booked a 6% decline in group revenue for the first half of 2025 as the company continues to suffer through a protracted downturn in the television advertising market.
The numbers: Seven booked $727 million in group revenue for the first half, a $48 million fall on the same period last year. Seven’s total TV advertising revenue was also down 6%, which the company attributed to a tough advertising market through the half, and the impact of major one-off sporting events.
Group EBITDA before significant items fell 26% to $92 million, down $32 million on the same period last year.
Statutory net profit after tax was down 67% to $18 million. Underlying net profit after tax excluding significant items was down 41% to $37 million for the half.
Costs were down 2% to $635 million for the half, a decline of $16 million compared to the same period last year. The company said full year operating costs are tracking to guidance of about $20 million to $30 million down year-on-year.
What they said: “Seven West Media’s H1 FY25 results reflect the ongoing soft total TV advertising market and the impact of major one-off sporting events,” Seven’s managing director and CEO Jeff Howard said in a statement on Tuesday.
“Mitigating the full impact of these revenue headwinds was an increase in our total TV revenue share to 41.5% (up 0.5 points) and the benefits of our year-on-year operating cost savings initiates [sic].
“Seven’s total TV audiences are up 1.5% 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% audience growth on 7plus more than offsetting the modest decline in linear audiences of 1.8%”
The source: ASX media release
