Seven West Media (ASX:SWM) reports strongest full-year performance in over a decade

• Seven West Media (SWM) reports its strongest financial performance in over a decade as net profits soar 60 per cent to $200.8 million for FY22
• The result was driven by a 21 per cent increase in group revenue to $1.5 billion and a 35 per cent increase in EBITDA to $342.2 million
• The company says its financial year started strong with the airing of the Tokyo Olympics in 2021, which provided a launch pad for its financial year content line-up
• In light of the full-year results, Seven West has launched an on-market share buyback of up to 10 per cent of its shares on issue
• SWM shares dropped 5.77 per cent to trade at 49 cents each at 12:53 pm AEST

Seven West Media (SWM) has reported its strongest financial performance in over a decade as net profits soar 60 per cent to $200.8 million for FY22.

The profit result was driven by a 21 per cent increase in group revenue to $1.54 billion and a 35 per cent increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $342.2 million compared to the 2021 financial year.

Managing Director and CEO James Warburton said these results reflected the successful completion of Seven West’s three-year strategy.

Mr Warburton said the EBITDA result was ahead of the company’s guidance and represented the best Seven television segment result in 11 years, the best EBDITA from the West Australian Newspapers in five years and the best group EBITDA result in six years.

“Seven is now the number one network nationally in audience share, and we have converted that into the number one position in revenue share, with a 39.1 per cent share of the national television advertising market across FY22,” he said.

“In the first half of the 2022 ratings survey year, Seven was number one in total people and 16 to 39s nationally, and less than one percentage point away from being number one in 25 to 54s. Seven won 14 of the 20 survey weeks and achieved the strongest audience share growth of any free-to-air commercial network.

“In the capital cities, Seven was number one in total people in the first half of the 2022 survey year and was the only commercial network to increase its audience share in total people and 25 to 54s.”

Seven said its financial year started strong with the airing of the Tokyo 2020 Olympics, which was delayed by a year due to COVID-19. This provided a launch pad for its financial year content line-up which included The Voice, SAS Australia, Dancing with the Stars and the AFL Finals.

In light of the full-year results, Seven West has launched an on-market share buyback of up to 10 per cent of its shares on issue

The buyback will be conducted on an opportunistic basis over the coming 12 months and funded from exisiting debt facilities.

On the market, SWM shares dropped 5.77 per cent to trade at 49 cents each at 12:53 pm AEST.