That may be all well and good but if Seven decides to affiliate with Southern Cross in a few years time, Prime will be in deep trouble
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You’d be daft to think Thorney would be interested in the business just for it to stay as it is. There is definitely a bigger play here.
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The sticking point is Northern NSW/Gold Coast. WIN has a 5 year agreement with 10 and NBN is owned by Nine so Seven would have to remain with Prime for at least until WIN’s affiliation agreement expires?
So if Seven gains control of Prime7 then no issues, but if they take over SCA’s TV assets then Prime could be showing either Seven or 10’s schedule (depending on where you live). And then there’s the mess in regional Queensland.
Also will audiences watch Prime News on a 10 affiliate? Seven would surely come in for the kill with big spending power.
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From what I have read in the past the affiliation agreements tend to all have clauses that state the metro network has to approve any change of control of the regional network, so presumably there would be a negotiation with Ten regarding NRN if Seven were to buy it.
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It will be interesting to see what the bigger play is - whether they like it or not, it appears that the shenanigans over the Seven buyout has done some damage to the point that Seven willing to look at alternate options.
I wouldnt put it past Seven playing the market to put pressure on Prime (whether it be to have another go at a buy-out, or to sign a new affiliation deal on different terms)
Possibly - a change in affiliation for Seven will be messy regardless, not only Northern NSW but also Queensland where Seven already own the regional stations. If Seven attempt to buy out SCA’s TV licences, they may look at a swap?
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My understanding is that Seven have a ‘get out’ clause in their existing contract with Prime if the ownership of Prime was to change significantly.
Meaning if WIN was to buy out Prime and SCA if the Fed Govt abolishes the current one licence per market rule, Seven may pull the plug and go satellite and on-line only in regional areas and over time playing the long game take the rest of the viewing audience with them, who knows? The metro areas and 7QLD would stay as is for Seven viewers. This would be like what Packer threatened with a national satellite TV service before Hawke, Keating and Beazley backed down and let through aggregation which has been a cash cow for all three metro networks since day one.
I struggle to see the benefits of a situation where Seven is available on satellite, while ABC, SBS, Nine and Ten are on terrestrial. What percentage of people wouldn’t bother spending upwards of $400 on equipment and installation just for Seven? I’d say 80%+
It’s a nice threat on paper, but unless every network is on board and the changeover is funded making it virtually free for the viewer to access it, then it’s just not viable. It would add a big nail to the coffin for regional free to air.
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Either way, if this was to happen Seven might just promote 7plus, still a considerable loss considering the internet in some locations…
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Would love to see them try! The affiliation deals make a lot of free money for the metro networks. Their earnings would dive without a regional deal and they’d be stuffed financially.
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WIN will never buy prime or SCA. it can’t. The legalisation won’t allow it to happen
He’s already covered for that:
Seven joins our Olympic team in the fight against COVID-19 urging all Australians to “Arm Yourself”
The Seven Network and Australian Olympic Committee (AOC) have joined forces to support the Commonwealth Government’s “Arm Yourself” COVID-19 vaccination campaign.
As part of the joint initiative, athletes currently competing at the Olympic Games Tokyo 2020 are featured in a series of messages urging Australians to “Arm Yourself” against COVID-19 by getting vaccinated as soon as possible.
Seven will broadcast the messages, which were filmed in the Olympic Village in Tokyo, during its broadcast of the Games.
The first messages feature rowing team members Annabelle McIntyre, Rosie Popa, Cam Girdlestone, Jack Cleary, Lucy Stephan, Jessica Morrison, Harriet Hudson, Ria Thompson, Caitlin Cronin and Rowena Meredith, along with 1500m runner Linden Hall and long jumper Brooke Stratton.
Brooke Stratton said: “I got vaccinated against COVID-19 before heading to Tokyo to compete, and I encourage all Australians to do the same to protect themselves, their families and friends. Let’s all arm ourselves in the fight against COVID-19.”
James Warburton, Seven West Media Managing Director and Chief Executive Officer, said: “Seven is pleased to partner with the AOC on this campaign at such a crucial time for Australia. With the entire country unified by the incredible sporting feats and courage of our athletes in Tokyo, there really is no better time for us to make such an important statement.
“The unprecedented reach of our Olympic Games coverage will help get the message out far and wide across Australia, while we owe a huge thanks to the athletes themselves and our busy production team for making it possible.”
The Chief Executive of the Australian Olympic Committee, Matt Carroll AM, said: “Before they left Australia for Japan, the Australian Olympic Team were vaccinated against COVID-19. This makes them the perfect ambassadors to support the “Arm Yourself” campaign.
“We welcome the opportunity to join forces with the Seven Network to support this vital national vaccination campaign.”
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FY21 results announcement date
Seven West Media (ASX: SWM) will be releasing its FY21 results on Monday, 16 August 2021.
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Seven West Media releases financial results for the financial year ended 26 June 2021
Summary
- Underlying Group EBIT of $229 million, up 141% year-on-year
- Net debt reduced 40% to $240 million, now at a leverage ratio of 0.95x
- The metropolitan free-to-air TV advertising market rebounded strongly, up 25.8% in 2H21 and up 11.5% in FY21
- Seven’s digital revenue grew 78% year-on-year, driven by BVOD market growth of 55% and five percentage points in share gains during the year
- $200 million gross cost and cash savings actioned
- Operating expenses declined 7.5% to $1.02 billion (excluding depreciation and amortisation)
Overview
Seven West Media Limited (ASX: SWM) has reported a statutory net profit after income tax of $318 million on group revenue of $1,276 million. Underlying net profit after tax (excluding significant items) was $125.5 million, an increase of 240% on the previous year. Underlying EBITDA of $253.9 million and EBIT of $229.1 million increased 105% and 141% respectively versus the prior corresponding period.
Seven West Media has made significant progress in its transformation strategy, repairing the balance sheet, making the necessary changes for the business to capitalise on a market recovery, and positioning the business strongly for the future.
Seven West Media Managing Director and Chief Executive Officer, James Warburton, said: “Our result today reflects the material progress of the changes made over the past two years.
“Since 2019, we have increased EBIT and grown our digital business to over 25% of earnings. We have a new entertainment schedule that is increasing ratings across all key demographics. We were the only network to grow commercial audience share across the key demographics in the financial year, which has set us up strongly to monetise this in FY22. At the same time, we have slashed our net debt position by 57% since FY19, giving us a balance sheet to pursue future growth opportunities.”
The results from the Olympic Games Tokyo 2020 clearly demonstrated the reach and scale of the Seven West Media platform across TV, publishing and digital. During the 17 days of the Olympics, television and digital coverage reached 20.2 million Australians, with a record- breaking 4.74 billion minutes streamed on 7plus.
Mr Warburton said: “The evolution of the digital and data side of our business has been a core element of our transformation strategy and the results are clear. 7plus revenue grew 78% in the financial year, outstripping the BVOD advertising market growth of 55%, and 7plus now has 9.2 million registered users. Seven’s digital earnings in FY21 were $60 million, up 131% on the previous year.
“A landmark milestone achieved this year was our commercial agreement secured with Google and Facebook, which was first in market and reflects the quality and value of our news content.
“WAN has grown its audience across print readership and digital, increasing circulation and subscription revenue while also transforming the cost base,” he said.
“We have reignited the Seven West Ventures strategy, with several new investments underway, and the portfolio increasing in value by 11% to $56 million.”
They have done incredibly well to turn this around. It’s a good news story for the company considering where they were two years ago.
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James Warburton said SWM would be keeping Seven Studios, as it now basically produces two shows: Home and Away, and Better Homes and Gardens. He also said that the company effectively lost $50 million from its Tokyo Olympics coverage despite writing record revenue from advertisers.
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Record ratings at Tokyo helped turned SWM’s fortunes around.
Good they’re keeping Seven Studios, that can effectively be turned around too with the right strategy and team behind it.
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