The Seven group slipped into the red from a profit the year before, posting a statutory loss after tax of $359.1 million for the 2015 financial year.
The results came on the back of falling business from mining for WesTrac and a soft advertising market for the Seven TV network.
After adjusting for significant items, the underlying net profit after tax was of $204.3 million, a fall of 19%. The previous year’s profit was $262.5 million.
Revenue for the mining equipment and media group was down 10% to $2.779 billion.
CEO Ryan Stokes, the son of the chairman Kerry, says the year was one of transformation as the company responded to the downturn in the resources sector
He says WesTrac Australia, leveraging its 70% share of the installed equipment in the mining sector, is well placed to capitalise on record ore export volumes.
“We continue to work closely with our customers to support them in driving efficiencies as well transforming our own businesses in this phase of the resources cycle and this work continues,” Stokes says.
Trading conditions in the mining and industrial services sector remain challenging with coal and iron ore prices under pressure and ongoing cost reduction initiatives being undertaken by all customers.
“However, Australia has entered the production phase of the commodity growth cycle and this presents significant long-term opportunities,” Stokes says.
Seven West Media sees low single digit growth in the television advertising market but an improvement in trend for magazines and newspapers.
“The company should benefit from the broadcast of the Olympic Games,” Stokes says.
However, Seven expects underlying EBIT in 2016 to be 10% down on the current year.
Final fully franked dividend of 20cps, full year dividend of 40cps.
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