Seven profits fall as it prices its media assets at zero
Seven Network has this morning become the latest Australian media owner to announce a dramatic reduction in profits, based mainly on writing down the value of its assets.
It announced a half yearly profit to December of just $20m, compared to $126m in the same period a year before.
This was mainly because it had written down the value of its investment in the Seven Media Group to zero, and put a lower value on West Australia Newspapers, which it took control of at the beginning of the year.
The underlying profit after tax was $77m, compared to $89m a year before – a decline of 13.3%.
As well as the TV network, Kerry Stokes’ Seven Media Group includes Pacific Magazines and its online joint venture Yahoo!7.
The financial reporting season has seen a string of media owners and marketing groups attempting to tidy up their balance sheets by reporting dramatic writedowns in the value of their assets, including News Corp, Fairfax, STW and to a lesser extent the Photon Group.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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So Seven value their media assets at zero. I wonder if that will flow through to their advertsing rate-cards?
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