In This Article:
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Total Group Revenue and Other Income: $727 million, down 6% from the first half of FY24.
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TV Advertising Revenue: Declined by 6%.
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Underlying Revenue: Down 1% after adjusting for the Olympics and FIFA Women's World Cup.
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Total TV Revenue Share: Increased by 0.5 points to 41.5%.
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Operating Expenses: $635 million, down 2% from the prior corresponding period.
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EBITDA Before Significant Items: $92 million, down 26%.
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EBIT Before Significant Items: $71 million, down 33%.
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Net Profit After Tax (Excluding Significant Items): $37 million, down 41%.
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Statutory Profit After Tax: $18 million.
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Basic EPS: $0.011.
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Underlying EPS (Excluding Significant Items): $0.024.
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Net Debt: $260 million with leverage of 1.7 times.
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Cost Guidance for FY25: $1.2 billion to $1.21 billion, a decrease of $20 million to $30 million year on year.
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7plus Audience Growth: Total audience increased by 36% in the first half.
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Cricket Revenue Growth: 16% year on year.
Release Date: February 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Seven West Media Ltd (ASX:SWM) reported a 43% increase in 7plus audience, indicating strong digital growth.
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The company achieved a record TV revenue share of 41.5% for a non-Olympics period, reflecting effective content strategy.
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Cost management efforts resulted in a 2% reduction in first-half costs, aligning with their guidance of a $20 million to $30 million decrease year-on-year.
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The launch of 7plus Sport, including cricket and upcoming AFL content, attracted 347,000 new registered users, with a significant portion in the high-value 18 to 54 demographic.
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Seven West Media Ltd (ASX:SWM) is optimistic about the second half, with Q3 bookings tracking up in low single digits and expected revenue growth from AFL streaming and the federal election.
Negative Points
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Total group revenue and other income declined by 6% compared to the first half of FY24, with a $48 million decrease.
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EBITDA before significant items fell by 26% to $92 million, reflecting the challenging market conditions.
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Underlying net profit after tax, excluding significant items, decreased by 41% to $37 million.
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The company faced a $14 million fair value loss adjustment on its Seven West Ventures portfolio, impacting financial results.
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The non-renewal of the Meta agreement contributed to a decline in other revenue, affecting overall financial performance.
Q & A Highlights
Q: Does the expectation of modest earnings growth in the second half account for the negative impact of the Meta deal ending? A: Yes, the expectation of modest earnings growth does take into account the negative impact of the Meta deal ending. - Jeff Howard, CEO, CFO, Managing Director