Seven expects total TV revenue to decline 8%, or 2% adjusting for the Olympics, in the half year to December.
In a trading update to Seven West Media's AGM, CEO James Warburton told shareholders the Olympics in the 2022 financial year have impacted relative trading conditions in the first half of the 2023 financial year.
"For the first quarter, Seven secured the number one national total TV share of 40.2% in a market that was down 6%.
"For the second quarter, we currently expect Seven to increase its total TV share year on year in a relatively flat market.
"Overall, therefore for the first half, Seven’s total TV revenue is expected to decline 8%, or 2% adjusting for the Olympics."
Full year 2023 costs are expected to be between $1.225 billion and $1.25 billion.
"Incremental revenue should offset related new deal costs," says Warburton.
"I would like to thank you, our shareholders, and all our staff for your ongoing support. Our company is growing and leading the market in terms of content, audience delivery and innovation.
"We are giving Australians the content they want – delivered how they want to receive it – and we are working closely with our advertising clients to deliver great results and new, market-leading innovations.
"The year ahead will, of course, present challenges but I’m confident that Seven West Media is in great shape to achieve great results for all our stakeholders."
Warburton says the three-year strategy that started in late 2019 has significantly transformed thecompany, creating a simpler, stronger and more profitable TV, digital and print business.
"Having successfully delivered this strategy, we now look forward to the next three years," he says.
"We will continue to build a more diversified media organisation. We will remain focused on being audience led and digital first, powered by data and tech. We will step up our focus on monetising total TV audiences, that is, across broadcast and digital, including material non-advertising revenue such as subscription revenue.
"Our low gearing creates capacity for growth and further capital management initiatives. We will continue to invest in the business and focus on generating strong cashflows, while also investing to drive growth across the business and diversify our portfolio of assets."
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