Seven West Media (ASX:SWM) has provided a trading update ahead of its 2024 Annual General Meeting at 11am today. Chairman Kerry Stokes and newly appointed CEO Jeff Howard outlined the company’s strategies to navigate a difficult economic environment while advancing digital transformation and maintaining strong audience engagement.
Stokes highlighted the challenges faced by the media sector, including sluggish advertising markets and regulatory hurdles. Despite these headwinds, Seven West Media has maintained a robust presence, reaching 17 million viewers each month through its broadcast and digital platforms. The company’s coverage of popular sports, particularly AFL and cricket, drew exceptional audiences, with the 2024 AFL Grand Final marking the largest streaming audience for an AFL game.
Howard addressed the company’s focus on building a “better, digital media business” and noted operational restructuring to drive performance. In FY24, Seven’s total broadcast audience grew by 0.5%, while its 7plus streaming service saw a 39% increase in consumption. Group revenue, however, fell by 5% to $1.415 billion due to an 8.2% decline in the television advertising market. Statutory net profit after tax dropped to $45 million, down 69% from FY23, with underlying net profit at $78 million, a 46% decrease.
The CEO highlighted the strategic importance of the newly launched digital newspaper, The Nightly, which attracted over 2.5 million unique monthly users within its first seven months. Howard also pointed to advancements in 7plus, which now offers exclusive, first-run content and enhanced user experiences driven by AI integration.
Looking ahead, Seven West Media anticipates revenue for the first half of FY25 to be down 6.5% year-on-year, adjusting to around 1% lower when excluding one-off events like the FIFA Women’s World Cup and the Paris Olympics. The company aims to cut costs by $20 to $30 million in FY25 to bolster financial stability while prioritising innovative content and expanding digital capabilities.
