Seven West Media finds profit again through ratings, revenue and cost cutting

A file photo of Seven West Media chairman Kerry Stokes (L) and CEO Tim Worner (R). Mark Metcalfe/Getty Images

Seven West media has returned to full year profit with $135.78 million, by improving ratings, cutting costs and reducing debt.

The result, compared to a $745 million loss the year before, was on a 3.4% slip in revenue to $1.62 billion. No dividends were declared.

CEO Tim Worner says the company has maintained a single-minded focus on ratings, revenue and costs savings.

“I’m pleased to report that we have delivered underlying EBIT ($236 million) at the upper end of our guidance, we have over-delivered on our cost out targets and significantly reduced our debt,” he says.

The company delivered $61 million of cost savings, including a 7% cut in staff, on an initial $40 million target.

Further cuts at the free-to-air television network and media company are expected to will deliver a $10 million to $20 million net costs.

“At the same time we have delivered a record-breaking ratings performance in the 2018 calendar year to date, and grown our share across every key demo at the expense of our competitors, resulting in a 12th consecutive financial year at number one,” says Worner.

The company is forecasting 2019 EBIT growth of 5% to 10%.

The 2018 numbers:

Source: SWM

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