Seven West Media held a trading update presentation at the Macquarie conference today.
Seven said it has increased its FY22 EBITDA forecast to between $335 million and $340 million, versus $254 million in FY21 – an increase of more than 30%. (At a proforma level, the increase is about 38%, or 33% ex Prime.)
James Warburton
Seven said its leading national Total TV business is positioned to capture share in broadcast and capitalise on the ongoing growth in BVOD.
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The company saw a 20% increase in new broadcast advertisers, along with a 92% growth in new digital advertisers.
TV market remains buoyant, with the FTA market estimated to grow 4 5% in Q4 year-on-year after growing 6.7% in Q3 (metro & regional FTA TV) Seven’s BVOD market growth continues to be strong, up 41% in Q3.
FY22 Cost guidance remains unchanged. Strong trading conditions underpins upgrade to EBITDA range to $335 million to $340 million (including $10 million from Prime) and FY22 Pro forma EBITDA including 1H Prime would be $350 million to $355 million.
SWM’s MD and chief executive officer, James Warburton said: “The earnings upgrade reflects the strength of advertising markets and the ongoing success of Seven’s broadcast and digital businesses.
“The recent acquisition of Prime Media Group, coupled with the winning performance of the Seven broadcast television business and the strong growth of 7Plus, make SWM the undisputed leader in the national total television market – a position that we plan to build on in the future.”
In February, Seven West Media reported a 48% jump in revenue after growth in metro TV advertising.