Seven West Media profits rise despite revenue dip as TV strengthens
Revenues for the Seven West Media Group dropped in the first half of the financial year by 1.2 per cent, but profits were up 5.5 per cent due to a series of write-downs made this time last year by the group, buoyed by a dominant position in the TV advertising sector.
Overall profits rose to $150m from $142m in the same period in 2012, although massive write-downs on a series of assets meant the group posted a loss of $109m this time last year.
TV still accounts for around 70 per cent of the earnings for the Kerry Stokes controlled company, with advertising on the medium up 2.9 per cent to $606.1m, and overall revenue for it up to $683m, a 2.3 per cent rise. However, revenue for Pacific Magazines dropped $7.3m.
Its newspaper The West Australian saw circulation revenues drop five per cent, but advertising revenues nosedive 14 per cent to $100.6m for the six months.
CEO Tim Worner said he expects to see “low-to-mid single digit growth” and he was “pleased to see the television advertising market return to growth this half”.
He added: “Our media businesses are delivering. We are setting about extending our leadership in content creation using the promotional strengths of our media businesses to grow new revenue streams. We are advancing our plans for the delivery of our content beyond broadcast television and publishing with our first major step, the forthcoming launch of HbbTV.”
Worner said Seven is on track for the launch of Hybrid Broadband Broadcast Television (Hbbtv) in May this year, a new viewing platform to be launched by Freeview that will combine internet and free-to-air television channels. Worner said the cost of delivering Hbbtv is not expected to be significant although the revenue opportunity could be, growing in line with the penetration of Hbbtv compatible televisions.
Worner also confirmed they are “in the midst of employing a new executive to drive Seven West Media’s digital future,” as Mumbrella reported last week. The appointment will follow Seven’s hire of Fairfax Media’s Ed Harrison as Yahoo!7 CEO in December.
