Kerry Stokes’s Seven group revenue and profits have suffered from the downturn in the mining industry and from a weakening media market.
First half results released today show revenue down 11.37% to $1.397 billion and statutory net profit down 74.05% to $68.485 million. Underlying net profit was down 9.97% to $ 117.95 million.
The results are slightly better than the company’s guidance.
CEO Don Voelte says the underlying result reflects challenging market conditions and a cautious outlook over the next six months.
The company, chaired by billionaire Kerry Stokes, still expects full year underlying earnings to be down 10% to 15%.
Soft commodity prices continue to impact Seven’s industrial services businesses, with miners cutting spending to improve productivity and reducing their capital spending and fleet expansion.
However, this should provide ongoing maintenance opportunities for Seven’s WesTrac business to grow its parts and service revenue.
Seven expects a slight decline in the full 2015 financial year television advertising market.
The company declared an interim fully franked dividend of 20 cents.
Seven is also continuing on-market share buy-backs. In December it bought back 11.9 million shares at a total cost of $84.4 million and says it intends to buy-back another 17.7 million using cash reserves.
Seven shares are up almost 10% to $6.76.