Seven West Media (SWM) H2 2024 earnings summary

Executive summary

• FY24 was challenging due to a weak advertising market, with group revenue down 5% year-over-year to AUD 1.415 billion and EBITDA down 33% to AUD 187 million, but audience growth was achieved in both linear TV and digital, with 7plus minutes viewed up 39% year-over-year.

• Organizational restructure in June created three divisions: television, digital, and The West, each as profit centers to drive revenue, efficiency, and accountability.

• Content strategy delivered audience growth and increased total TV market revenue share to 40.2%, up 1.7 points.

• Cost reduction initiatives delivered AUD 25 million in 2H FY24, with an expanded program targeting AUD 20–30 million in net savings for FY25.

• Digital platforms saw strong growth, with new products launched and The Nightly, a digital-only national newspaper, now EBITDA positive and the fastest-growing news brand in Australia.

Financial highlights

• Group revenue was AUD 1.415 billion, down 5% year-over-year; EBITDA before significant items was AUD 187 million, down 33%; EBIT down 37% to AUD 151 million.

• Statutory net profit after tax was AUD 45 million, down 69%; underlying net profit after tax (excluding significant items) was AUD 78 million, down 46%.

• Basic EPS was AUD 0.029, down 69% year-over-year; underlying EPS was AUD 0.051, down 46%.

• Net debt increased to AUD 301 million, up from AUD 249 million, with leverage at 1.6x net debt/EBITDA.

• Cash flow before temporary and capital items was AUD 54 million.

Outlook and guidance

• FY25 cost guidance is AUD 1.2–1.21 billion, targeting net savings of AUD 20–30 million versus FY24.

• CapEx is expected to increase in FY25 due to Melbourne relocation and Martin Place exit.

• Total TV advertising market expected to grow modestly in July and August, boosted by the Olympics, but share will be impacted; September and October bookings are tracking down 4–5% year-over-year.

• Revenue share gains anticipated in FY25 from digital sports rights; cricket ad bookings are up 11% year-over-year.