Seven West Media says its full year earnings will slide below last year in a soft advertising market made worse by the economic uncertainty surrounding the federal election.
The company, in a trading update, says it now expects underlying EBIT (earnings before interest and tax) for the year to June to be between $210 million and $220 million, down from $235.6 million last year.
Seven West Media had been aiming for growth of up to 5%, or worst case no growth.
"This revised guidance reflects the soft conditions and short market experienced across the advertising sector, and the economic uncertainty surrounding the Federal Election," the company says.
In February, Seven West Media report a 4% drop in half year underlying earnings to $146.8 million.
Cost cutting will be at the top end of the $30 million to $40 million range provided at the half year results in February.
Seven has grown revenue share this financial year, including a 41.3% share of the metro market and 42.5% share of BVOD market in April.
"SWM continues to transform its business at pace, over-delivering on cost-savings and investing in strong growth areas," the company says.
Seven Studios will achieve strong EBIT growth and 7Plus will grow revenue over 40% this financial year.
Seven West media shares were down 2.5% to $0.492 in early trade today.
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