Report Overview

Seven and Nine 1H19 update – increasing share in a declining market

On 19^th February 2019, Seven West Media (SWM) reported its 1HFY19 earnings. Some of the key highlights from the announcement included:

• Revenue of A$798.9mn, down 1.5% YoY.

• Operating EBITDA of A$161.5mn, down 8.6% YoY.

• Net Profit (excluding significant items) of A$91.8mn, down 7.8% YoY

• Group operating expenses remained flat including cricket costs.

• Increased cost out reduction target from A$20-30mn to A$30-40mn across FY19.

• FY19 EBIT guidance of 0-5% growth.

• Improved 2H performance but management expects low single digit decline in metro TV ad market for FY19

With a challenging environment for the core FTA business, traditional broadcasters must focus on improving audience share, driving new audience growth through digital content offerings and taking costs out of the business.