Shares in Seven West Media are tanking after the media group posted a weak full year revenue result and a flat outlook for the next 12 months.
A short time ago, they were down more than 14% to $0.89.
Revenue for the year to June 25 was down 2.8% to $1.72 billion. Underlying net profit after tax excluding significant items was $207.3 million, down 0.9%.
“The advertising market remains short, particularly given the impact of the Olympic Games,” the company said.
“At this stage, Seven West Media believes the overall outlook for the advertising market over the coming twelve months will see the television advertising market to be flat to down in the low single digits, while the advertising trends experienced by the publishing assets will continue in the coming year.”
Underlying group EBIT (earnings before interest and taxes) is expected to be down 15% to 20% over the next 12 months.
Seven West Media, which has the West Australian newspaper, several Channel 7 television stations, Yahoo7 and magazines titles, recently bought the Sunday Times and its website Perth Now from News Corp.