Seven West Media’s half-year profits have taken a substantial blow with earnings dropping 40 percent, forcing the company to defend its strategy as it blames a weak advertising market.

The group’s revenue was down five percent to $775 million, and its share price is down 43 percent across the past year as total market capitalisation fell to $377 million.

2023 was a tough year for TV revenue – Seven’s decline is comparable to its greatest rival, as Nine’s profit for the last financial year fell 38 percent.

Seven putting on a brave face

Though net profits also fell 49 percent, CEO James Warburton says the company “successfully executed on [its] strategy during the period to deliver consistent and engaging content to drive audience growth and revenue share across the total TV market”.

“Despite this progress and our disciplined management of costs, our financial performance reflects the weakness in advertising markets, particularly as the second quarter progressed,” he says.

“We continue to believe in the power of television and firmly believe that the total TV industry is set to regain market share. Total TV is now growing, and Seven is leading that growth.”

A poor time for TV

ThinkTV recently announced total TV advertising revenue figures for 2023 and for the full year, the combined revenue of $3.4 billion is a drop of 10 percent compared to 2022. In the December half, revenue was also down nine percent when compared to the same period of 2022.

“The financial result for the past year reflects the perfect storm of economic headwinds faced by many Australian media companies,” says ThinkTV CEO Kim Portrate. “Inflationary pressures, supply chain disruptions, 13 rate rises, and record-low consumer confidence have collectively created a complex landscape for advertisers.” 

Next, check out the best Super Bowl ads of 2024.

Cover image attributed to SWM.