Seven West Media Posts Strong Financial Performance for FY22

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Seven West Media Limited posted its best financial performance in more than a decade for its fiscal year 2022 results.

The media company reported statutory net profit after income tax of $211.1 million on group revenue of $1.54 billion.

Its underlying net income after tax (excluding significant items) was $200.8 million, a 60% increase over the prior year.

Seven West Media’s report showed earnings before interest, taxes, depreciation and amortization (EBITDA) of $342.2 million and earnings before interest and taxes of $309.0 million, both up 35%. compared to the previous corresponding period.

Managing Director and CEO, James Warburtonsaid: “These results mark our company’s best financial performance in more than a decade and reflect the success of the group’s three-year strategy.

“The EBITDA we announced today of $342.2 million is ahead of the guidance we gave in early May of between $335 and $340 million.

“These results represent Seven television’s best EBITDA results in 11 years, West Australian Newspapers’ best EBITDA result in five years and our best group EBITDA result in six years.

“The diligent execution of our strategy since the end of 2019, the acquisition of the assets of Prime Media Group and the strong growth of 7plus – combined with the exceptional success of Seven’s television broadcasting business – have made our company the undisputed leader of the total national television market, ie through metropolitan and regional broadcasting and BVOD television.

Warburton said: “Seven is now the No. 1 network nationally in audience share and we’ve converted it to the No. 1 position in revenue share, with a 39.1% share of the national market for television advertising in fiscal year 22.

“During the first half of the 2022 ratings survey year, Seven was No. 1 in total people and 16-39 year olds nationwide, and less than a full percentage point to be No. 1 for 25-54 year olds. Seven won 14 of the 20 survey weeks and achieved the highest audience share growth of any free shopping network.

“In capitals, Seven was No. 1 in total people in the first half of the 2022 survey year and was the only commercial network to increase its audience share in total people and the 25 to 54 year.

“We have made significant progress in our digital transformation, increasing our digital revenues to more than 40% of group revenues, compared to just 2% four years ago, and creating a market-leading digital data offering, backed by over 13 million recorded and verified data. 7plus users.

“Seven Digital’s revenues increased 93% during the period to $178 million and EBITDA increased 129% to $139 million. 7plus outperformed the BVOD market, growing 57% year-over-year in a market that grew 47%.

Chairman and CEO James Warburton and Chief Financial Officer Jeff Howard

“The strength of the company’s balance sheet, at 0.7x net debt to EBTDA, has paved the way for capital management initiatives, with the company today announcing a market buyback until to 10% of the issued capital. The buyout will be highly accretive for Seven West Media shareholders.

Acquisition of the assets of Prime Media Group has created a truly national business and unlocked value for SWM. Combined, SWM and Prime reach 91% of all Australians each month,” said the CEO of Seven West Media.

“The Prime brand has now been retired and cost synergies will be at the top of the guidance given when the acquisition was announced. The integration of the two companies is well underway, with significant growth already achieved for 7plus across the regional markets and the creation of new revenue opportunities across the group.

Last year’s Tokyo 2020 Olympics provided a solid launch pad for Seven’s fiscal year 2022 content programmingwhich included the No. 1 entertainment program of the year – The voiceSAS Australia, Dancing With The Stars: All Stars, The Voice Generations, the AFL Final Series (the AFL Grand Final was the No.1 schedule of 2021), Bathurst 1000, the Ashes cricket test series and Beijing Winter Olympicswhich reached 14 million viewers through broadcast and 7plus.

“The backbone of Seven’s content Sunrise, The Morning Show, The Chase Australia, 7NEWS, Home and Away and Better homes and gardens also remained dominant.

“West Australian Newspapers achieved its best financial result since financial year 2017. Digital growth and the full-year contribution of revenue from digital platforms more than offset the decline in print. western australia is one of Australia’s strongest news brands, with impressive results in both digital and print. Subscriptions and digital audiences continue to show strong growth.

“Seven West Ventures made several new investments during the period and a number of new investments are under consideration. The total market value of the portfolio currently stands at approximately $60 million.

“Operating costs delivered in the middle of the reported guidance range of $1.19 billion to $1.21 billion, despite the inflationary environment,” Warburton added.

Looking ahead, Warburton said Seven West Media is targeting a total TV revenue share of 39% in FY23, and the group’s operating costs are expected to be between $1.2 billion and $1.22 billion..

Warburton added: “The past year has seen SWM become one of the most successful and fastest growing businesses in the Australian media industry, and we are well positioned to continue this growth and strengthen our leadership position.

“The three-year strategy that began in late 2019 has significantly transformed our business, creating a much simpler, stronger and more profitable total national television, digital and print business.

“We will continue to build a more diverse media organization to reduce risk and grow; stay focused on being people-led and digital-first, powered by data and technology; and intensifying our focus on monetizing the total TV audience, i.e. across broadcast and digital.

“At the same time, our low leverage gives us the ability to pursue our growth and capital management initiatives,” said the Seven West Media’s said the general manager.



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