Exclusively for lovers of acronyms.
OMG
DYLIWNITBES?
(Don’t you love it when networks integrate their back-end systems?)
For years I had been wondering when their DMP and SSP would combine. I can finally relax.
SWM-backed video service Crowdspark has been placed into liquidation.
A Business Council of Australia advertising campaign will be shown nationally on Seven “thanks to the support of Seven West Media”. A BCA email to its members seems to imply that Seven is providing free air time for the campaign.
Story by Michael West:
One of the ads:
John Durie in The Australian claims that Fairfax discussed a merger proposal with Seven but the Nine/Fairfax joint venture Stan partly prevented a deal going ahead. Durie claims that Kerry Stokes is eager to sell out of Seven West Media.
I’m guessing the mining equipment and industrial rental assets held by Seven Group are more appealing to Stokes these days than Seven West’s television & radio stations and newpapers.
Fairfax is reporting allegations that Seven executive Ben Roberts-Smith had an affair with a lawyer who was doing work for Seven. It’s also alleged that at the Realm Hotel he “had subjected her to an act of domestic violence and intimidation” in the hours after a function at parliament house in Canberra in April.
It’s one of many allegations against Roberts-Smith:
His personal life is a matter for him and the people it. Seven West Media can’t prejudice the outcome of investigations while they’re underway. If the allegations are found to be correct he should be stood down or stand down. I am not sure how he was ever qualified to hold any position at SWM.
1 Like
The North Coast Times will also be closed.
Roberts-Smith has also named Fairfax journalists Nick McKenzie, David Wroe and Chris Masters in the lawsuit.
Seven West Media releases financial results
for year ended 30 June 2018
HIGHLIGHTS
Underlying EBIT of $236 million, at upper end of $220-240 million guidance
Over-delivered on cost out target with group costs down $21 million
Underlying net Profit after tax of $142.5 million
Group net debt reduced to below $635 million
Strong resurgence in ratings performance with ongoing momentum
Forecasting 5-10% underlying EBIT growth in FY19
Cost reduction program on target to deliver net group cost savings of $10-20 million in FY19
New Prime affiliate agreement delivers material step up in revenue share, effective 1 July 2018, with further step up in FY20
Net debt to reduce leverage below 2x in FY19
Overview
Seven West Media’s Managing Director and Chief Executive Officer Tim Worner, said:
“Throughout the financial year we have maintained a single-minded focus on improving our core business with ratings, revenue and our costs savings initiatives the priority.
“I’m pleased to report that we have delivered underlying EBIT at the upper end of our guidance, we have over-delivered on our cost out targets and significantly reduced our debt.
“Our transformation accelerated in the second half of the financial year and delivered $61 million of cost savings on our initial $40 million target. These savings, which included a 7% reduction in FTEs, more than offset the anticipated AFL uplift and spectrum charge. The transformation will continue in FY19, targeting further cost reductions in each of the three operating businesses and will deliver a $10-20 million net group cost reduction, including Cricket.
“At the same time we have delivered a record-breaking ratings performance in the 2018 calendar year to date, and grown our share across every key demo at the expense of our competitors, resulting in a 12th consecutive financial year at number one.
“The momentum will be driven further by our historic six year agreement with Cricket Australia that, together with AFL, locks in premium sport all year round. Our Cricket deal provides us 400 hours of premium sport across the summer which we will carry live and free across the screens of 7. We are the first FTA network to have both the BBL and Tests, meaning we can cross-promote and monetise the two most popular forms of the sport like never before.
“Having the number one network, channel and multichannel is particularly advantageous as we are now operating in a growing market. The FTA metro market has delivered its second consecutive half of growth, with the sector benefiting from industry initiatives to promote the effectiveness and ROI that only TV delivers. We expect growth to continue in the 2019 financial year.
“Our production business Seven Studios is a key differentiator between us and our competitors. It delivered another year of strong earnings growth, grew our international market presence and is set to capitalize on the exponential global demand for content and formats.
“The recent successful launch of 7plus was a key milestone in our strategy to take full control of our direct to consumer products. It gives us a fully owned and operated platform to evolve our distribution model and drive greater monetization of our content. Strategic new content deals are reshaping the acquisition and monetisation of rights and our 2.6 million monthly viewers now have more than 6,000 on-demand episodes to choose from.
“The newly signed five year extension of our affiliation agreement with Prime Media Group achieves an effective revenue share at least equivalent to recent market benchmarks. The terms of this new agreement reflect the significant investment we have made in sports rights and other content and is effective 1 July 2018.
“Our publishing assets are outperforming in their respective categories, while undertaking significant restructuring. The results are clear, with Pacific’s EBIT up 170% on last year and The West driving improved trends with a refreshed sales strategy.
“We are executing our strategy at great pace, maintaining our focus on the core to continue to drive a stronger performance in ratings and revenue, while transforming the business to be more lean and agile. Growing our studios business, digital assets and investment portfolio underpins growth across the business.
“We very well placed to meet the challenges, and capitalise on the opportunities, ahead of us, and forecast 2019 EBIT growth of 5 to 10 percent.”
Results
Seven West Media reports a profit after income tax of $142.5 million on total revenue of
$1,622.8 million*. EBITDA of $270.9 million is down from $306.7 million in the prior financial year with EBIT of $235.6 million after $261.4 million in FY18.
$8.5 million in significant items were recorded in the period including write down of assets held for sale, restructuring costs, net gain on other assets and net gain on disposal of investments and controlled entities.
1 Like
It’d be interesting to see how much of that FY $1.62 billion revenue came from their TV sport assets (Melb Cup, Winter Olympics, Comm Games, Aus Open and AFL incl. 2017 GF). As so much of their focus, publicly, is on “premium sport” and and like.
Just mentiuoned on Seven Sydney News that SWM have made $136 million and that a possible merger between News Corp and SWM could happen … WOW JUST WOW, that is balsy of them to mention it so openly.
It’s been rumoured for quite a while so no need to tiptoe around it.
1 Like
rumors are one thing but to openly announce it during the news broadcast.
1 Like
Did Worner change his mind during the day? He emphatically said there are no talks with News, or anyone else, about a merger. In The Australian:
1 Like