Full year results by Kerry Stokes' Seven Group were pulled down by its significant holding in Seven West Media.
The group reported a 42.39% fall in statutory profit to $115.8 million. Revenue was up 11.72% to $4.56 billion.
Without significant items, including those from Seven West, underlying profit was up 2.77% to $471.6 million.
The diversified Seven Group has exposure to industrials including Caterpillar dealer WesTrac, Coates Hire and an investment in Boral.
But it also has 40% of Seven West Media (SWM) which yesterday posted a statutory loss of $162 million with revenue down 14% to $1.23 billion. Net profit after tax for continuing operations and excluding significant items was $40.8 million, down 66.1%.
Seven Group says its statutory result was impacted by non-cash significant items of $245 million relating to its share of Seven West Media’s significant items, together with a mark-to-market impairment of the value of Seven Group’s investment.
The Seven Group says Seven West Media has faced an unpredictable advertising market but in response has repositioned the business and is accelerating its transformation focus.
Cost savings total $170 million and the AFL broadcast rights contract renegotiation saved $87 million.
Asset sales to date have realised $150 million.
“This provides support for SWM’s content-led growth strategy, which has shown early signs of positive ratings impact and audience demographic shift,” says Seven.
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