Seven West posts $149.18m net profit, following last year’s writedowns

seven westSeven West Media has today posted a $149.18m net profit, with the group’s print, magazine and digital division continuing to drag down the company’s growth and profit.

Revenues are down 1.2 per cent to $1.84bn while the underlying net profit was up 5 per cent to $236.2m. This was on the back of last year’s write downs in the value of its magazine business and joint venture Yahoo!7, which saw the company post a net loss of $69.8m.

While television revenues, which account for around two thirds of the groups revenues, were up 3 per cent to $1.3bn the ASX report shows EBIT in the magazine division down 30.4 per cent to $20.4m from $29.3m last year, the newspaper division Western Australian Newspapers down 23.9 per cent to $65.9m from $86.6m and digital assets Yahoo!7 and Quokka EBIT were down 37.7 per cent to $9.8m.

“This is a positive result in challenging market conditions,” said Tim Worner CEO of Seven West Media, in a statement.

“It underlines our strength as an integrated media company across broadcast television, publishing and new forms of digital delivery. We are delivering leadership in broadcast television and our publishing businesses continue to outperform their peers.

During an investor briefing this morning Worner noted the record revenue share 41.3 per cent in TV before going on to explain: “in terms of the coming year our advertising market expectations for the TV advertising are in the low single digits. We have maintain our outlook for the newspaper market for a continuation of the current trend and we expect the rate of decline in the magazine market to lessen once again as we predicted for the 2014 financial year.”

Seven West Media

The remuneration report shows that revenue officer Kurt Burnette and operating officer Nick Chan both received significant pay rises as a result of their promotions last year. Burnette’s total salary package rose by almost half a million dollars from $1.39m to $1.88m this year while Chan’s package went from $996,149 when he was at Pacific Magazines to $1.167m this year. Seven West CEO Tim Worner’s package fell from $3.69m last year to $3.536m.

Nic Christensen 

(Declaration of interest: Seven is currently advertising on this website.)


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