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.”