Seven Western media (ASX:SWM) has provided a trading update ahead of the 2024 Annual General Meeting taking place at 11am today. President Kerry Stokes and new CEO Jeff Howard outlined the company’s strategies for navigating a challenging economic environment, while driving digital transformation and maintaining strong audience engagement.
Stokes highlighted the challenges faced by the media sector, including stagnant advertising markets and regulatory hurdles. Despite these obstacles, Seven West Media has maintained a strong presence, reaching 17 million viewers each month across its broadcast and digital platforms. The company’s coverage of popular sports, particularly AFL and cricket, has attracted exceptional audiences, with the 2024 AFL Grand Final marking the largest streaming audience for an AFL match.
Howard spoke of the company’s focus on building a “better digital media business” and highlighted operational restructuring aimed at improving performance. In fiscal 2024, Seven’s total TV audience grew by 0.5%, while its 7plus streaming service saw consumption increase by 39%. Group revenue, however, fell 5% to $1.415 billion due to an 8.2% decline in the TV advertising market. Statutory net profit after tax fell to $45 million, down 69% from FY23, with underlying net profit at $78 million, down 46%.
The CEO highlighted the strategic importance of the newly launched digital newspaper, The Nightly, which attracted over 2.5 million unique monthly users in its first seven months. Howard also highlighted the progress of 7plus, which now offers exclusive first-run content and improved user experiences driven by AI integration.
Looking ahead, Seven West Media expects revenue for the first half of fiscal 2025 to decline 6.5% year-on-year, adjusting for about 1% lower if one-off events such as the World Cup are excluded FIFA Women’s and the Paris Olympics. The company aims to reduce costs by $20 million to $30 million in fiscal 2020 to strengthen financial stability by prioritizing innovative content and expanding digital capabilities.