Seven West Media posted a 21% jump in revenue to $1.54 billion for the year to June as television earnings lift.
Profit after tax, excluding significant items, was 60% higher at $200.76 million. Statutory net profit after income tax of $211.1 million.
The company, saying it is "well placed to continue that growth," announced an on-market share buyback of up to 10% of the issued capital.
CEO James Warburton: “These results mark the strongest financial performance by our company in over a decade and reflect the successful completion of the group’s three-year strategy.
“The EBITDA we have announced today of $342.2 million is ahead of the guidance we gave in early May of between $335 million and $340 million.
“These results represent the best Seven television EBITDA results in 11 years, the best EBITDA from West Australian Newspapers in five years, and our best group EBITDA result in six years.
“The diligent execution of our strategy since late 2019, the acquisition of the assets of Prime Media Group and the strong growth of 7plus – coupled with the outstanding success of Seven’s television broadcast business – have made our company the undisputed market leader in the national total television market, that is, across metropolitan and regional broadcast and BVOD television."
Digital earnings now represent more than 40% of group earnings, compared to just 2% four years ago.
Revenue from Seven Digital grew 93% to $178 million and EBITDA increased 129% to $139 million.
7plus has outperformed the BVOD market, growing 57% year-on-year in a market that increased 47%.
West Australian Newspapers delivered its best financial result since 2017. Digital growth and the full year contribution from the digital platforms revenue more than offset the decline in print.
Seven West Ventures made several new investments and there are a number of new investments under review. The total market value of the portfolio currently stands at $60 million.
OUTLOOK
Estimated total TV advertising market in the September quarter is down about 2%, excluding the Olympics, down 7% including the Olympics
Visibility improving into December quarter with "longer dated forward bookings". The outlook is positive year-on-year.
Estimates include BVOD, with growth expected to remain "robust".
Targeting 39% total TV revenue share in the full financial year.
Warburton said: “The past year has seen SWM emerge as one of the best performing and fastest growing companies in the Australian media sector, and we are well placed to continue that growth and build on our leadership position.
“The three-year strategy that started in late 2019 has significantly transformed our company, creating a much simpler, stronger and more profitable national total TV, digital and print business.
“We will continue to build a more diversified media organisation to reduce risk and to grow; remain focused on being audience led and digital first, powered by data and tech; and step up our focus on monetising total TV audiences, that is, across broadcast and digital.
“At the same time, our low gearing gives us capacity for further growth and capital management initiatives.”
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