Seven West shares down as full-year profit falls

The news: Shares in Seven West Media are down after the owner of the Seven Network and West Australian newspapers reported a sharp drop in annual profit.

The numbers: The company reported a net profit of $145.7 million, a 31% decline from a year earlier, primarily driven by a weak advertising market. Revenue was down 3.3% to $1.5 billion and the media group said no dividend will be paid to shareholders. The results prompted Seven West shares to slide almost 5% to 38 cents in early trading on the ASX.

The context: The company, owned by billionaire Kerry Stokes, has seen a slowing down in advertising revenue amid a year-on-year decline in the total TV market. It said early trading in July and August suggests underlying revenue is tracking the market trend for FY23.

What they said: “The market decline accelerated during the second half, driven by the macroeconomic environment. Our position as a national TV network and the strength of our digital offering continues to resonate in the market and somewhat mitigated the market decline,” CEO James Warburton said.