Seven boosts profits guidance by 15%
The improving outlook for the free to air TV industry was reflected in the report to shareholders at Seven’s AGM today.
Peter Gammell, Seven Group’s CEO, said that the company was expecting a 15% increase on previous profit predictions from before Kerry Stokes proposed the merger of Seven and WesTrac.
Gammell said: “Based on the Group’s internal management accounts and performance of the Group’s Operating Subsidiaries and Investments so far this year, we currently expect the underlying Group EBITDA and NPAT will be approximately 15% higher than we had forecast for FY11 at the time of preparation of the Scheme Booklet – driven by the performance of WesTrac and Seven Media Group.”
Shortly after Gammell’s comments, Seven’s shares rose to $7.83, their highest point since the two companies came together.
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Seven Group must be the only listed company in the world to benefit from an uptick in FTA ad revenues and a mining boom. If that’s the case, a revision upwards of 15% seems a little disappointing 😉
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