- Seven West Media (SWM) is back in the black, posting a $318.1 million profit in its FY21 full year results and annual report
- SWM brought in $253.9 million in earnings and $1.27 billion in revenue over FY21, with net debt reduced by $158 million
- It says an improved TV advertising market also allowed for a $208.5 million reversal in the TV licence impairment
- Looking ahead, SWM says FY22 is starting off well, but its CEO flagged more mergers and acquisitions as SWM looks to improve its balance sheet
- Despite the strong turnaround from FY20’s $201.2 million loss, the media company’s shares closed 7.7 per cent down at 47.5 cents on Monday
Seven West Media (SWM) is back in the black, posting a $318.1 million profit in its FY21 full year results and annual report.
Despite the strong turnaround from FY20’s $201.2 million loss, the media company’s share price dropped more than per cent on Monday.
SWM’s full year report revealed it had brought in $253.9 million in earnings before interest, taxes, depreciation and amortization over 2020/21.
It’s revenue hit $1.27 billion in FY21, while its net profit after tax totalled $125.5 million – an increase of 240 per cent year on year.
Seven reduced its debt over the financial year, cutting $158 million to bring its net debt balance to $240 million.
Additionally, the media company said it saved $200 million via cost cutting measures, with operating expenses also dropping 7.5 per cent to $1.02 billion.
Commenting on the results, Seven West CEO and Managing Director James Warburton said both the Olympics and the digital side of the business had performed well.
“During the 17 days of the Olympics, television and digital coverage reached 20.2 million Australians, with a record breaking 4.74 billion minutes streamed on 7plus,” Mr Warburton said.
“7plus revenue grew 78 per cent in the financial year, outstripping the BVOD advertising market growth of 55 per cent, and 7plus now has 9.2 million registered users.
“Seven’s digital earnings in FY21 were $60 million, up 131 per cent on the previous year.”
The strong TV ad market, with SWM noting an 11.5 per cent rebound over FY21, allowed for a $208.5 million reversal in Seven’s TV license impairment.
Looking ahead, Seven said FY22 was starting off well with a 60 per cent rise in revenue bookings and an expected doubling of digital earnings in FY22.
SWM is targeting a 40 per cent broadcast share in the first half of FY22, while operating expenses are forecast to hit up to $1.1 billion.
Seven’s CEO said the year ahead would see the company try and improve its balance sheet further, with mergers and acquisitions likely.
“Cost discipline and addressing onerous content contracts are an ongoing focus for us. This year we will also renegotiate our debt facilities to secure an improved financial position,” Mr Warburton said.
“All of this, particularly the improvement in our balance sheet, puts us in an excellent position to work with new partners and/or towards consolidating the media sector. We are pursuing several options in these areas.”
Seven West Media’s shares closed down 7.77 per cent at 47.5 cents per share on Monday.