Seven West Media shares soared after the company announced a $75 million share buy-back.
A short time ago, the shares were up 6.4% to $0.74.
CEO Tim Worner says the buy-back is a strong statement of confidence in the company.
“We have seen volatile trading in Seven West Media shares and we are of the view that this company is extremely well-placed to build on its leadership,” he says.
The buy-back will be for up to 6.6% of the issued capital.
The company’s earnings outlook and guidance remains unchanged. The group expects the overall outlook for the advertising market over the next 12 months will see low single digit growth for television. And underlying earnings fare expected to be between 5% and 10% lower in 2016.
Seven West Media last month wrote down $2.096 billion from the value of its television licenses.
The company reported a statutory net loss of $1.887 billion for the year to June 27 compared to a net profit of $149.2 million. Profit after tax excluding significant items was $209.1 million, down 11.5%.
Revenue was 4.7% lower at $1.774 billion.
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