Seven West Media releases full-year results

Seven West Media has reported a net loss of $745m for the 2017 financial year, which includes $988.8 million of “…significant items which predominantly reflect non-cash impairment of the carrying value of intangible assets, and recognition of provision relating to onerous contracts.”

SWM’s results announcement said “The reduction in the carrying value of the television assets represented the largest proportion of these write-downs.”

Operating cashflows before interest and tax were $226.9 million.

Television revenue was up 1.7% to $1281m, however EBIT fell to $249.7m from $291.7m last year.

Total revenue for The West Australian fell 4.8% to $217.5m, with advertising spend down 11.9% to $127.8m.

The West acquired The Sunday Times and PerthNow from News Corp in November last year, so next year’s annual report will be a better indication of the results of that acquisition.

Managing Director and CEO Tim Worner, said  the 2017 results reflected “a tough market, one that continues to change at a pace but a pace that we must match in our transformation”.

“Despite these tougher conditions, we continue to lead in the core markets in which we compete, while at the same time making the necessary and sometimes difficult decisions in the transformation of our business,” he added.

“This year we marked our 22nd consecutive half of ratings and revenue leadership in metro broadcast television. We also expanded our leadership in content creation and distribution across new delivery platforms with over 45% share in live streaming and AVOD catch-up revenue. We have continued to invest in creating our own content and we are growing our productions business globally, delivering a further 11% revenue growth in the year.”

“The West has successfully integrated The Sunday Times and PerthNow into the business and has rapidly improved the digital offering of the business.”

SWM reported overall digital growth for the company (excluding joint venture Yahoo7) climbed 102%.