Seven West downgrades profit forecast
Seven West Media has downgraded its profit forecast in an update to the stock market this morning.
In the announcement, Seven West advised that it expects underlying Group EBIT for the year ending 30 June 2019 to be in the range of $210 million to $220 million versus $235.6m in the prior year. Earlier this year Seven had forecast flat profits with an estimate of 0 to 0.5% growth.
Seven’s shares slumped 50c, or 3%, on the announcement.
In the release to the ASX, Seven said net cost reductions will be at the top end of the $30 million to $40 million range estimated earlier this year while expecting to reduce net debt by approximately $75 million over the financial year.
The full announcement:
Seven West Media Limited (ASX: SWM) today advised that it expects underlying Group EBIT for the year ending 30 June 2019 to be in the range of $210 million to $220 million versus $235.6m in the prior year.
FY19 Group net cost reduction will be at the top end of the $30 million to $40 million range provided at the 2019 Half Year Results in February.
Seven has grown revenue share this financial year, including a 41.3% share of the metro FTA market and 42.5% share of BVOD market in April, however, this revised guidance reflects the soft conditions and short market experienced across the advertising sector, and the economic uncertainty surrounding the Federal Election.
SWM continues to transform its business at pace, over-delivering on cost-savings and investing in strong growth areas.
Seven Studios will achieve strong EBIT growth and 7Plus will grow revenue over 40% this financial year.SWM remains focused on improving balance sheet flexibility and will reduce net debt by approximately $75 million in FY19.
Oh I do love that they can no longer just blame Yahoo7 for dragging them down – and of course 7Plus has grown in revenue – they only used to get half of it!
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…..if Stoke’s would have tried to #blamelabor had they got into power?
#probably
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Blame the data division – they weren’t being commercial enough about their audiences.
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“Seven has grown revenue share this financial year, including a 41.3% share of the metro FTA market and 42.5% share of BVOD market in April”
Share is irrelevant when revenue is down. Not sure why the networks still talk share, implies they think they’re only competing with other TV networks.
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