Cost cuts restore Seven West profit

SEVEN West Media has swung to a full-year profit as the television broadcaster and magazine publisher reported an increased market share in 2018 and higher than expected cost savings.

The company posted a net profit of $135.8 million for the year ended June 30, compared to a net loss of $744 million in 2016/17, when it had been hit by weak ad revenue and a heavy write-off in the carrying value of its television licences.

Annual revenue fell 3.2 per cent to $1.62 billion, from $1.67 billion a year earlier.

Chief executive Tim Worner says the company maintained a “single-minded focus” on improving its core business with ratings, revenue and cost savings the priority.

“Our transformation accelerated in the second half of the financial year and delivered $61 million of cost savings,” Mr Worner said.

The group – which includes Seven Network, Pacific Magazines and The West Australian newspaper – said its cost cutting program is on target to deliver net group cost savings between $10 million and $20 million in 2018/19.

The company is planning a television cricket blitz over the summer after splashing $450 million in April to buy the rights to Australian test matches as well as the men and women’s Big Bash Leagues.

“Too much cricket is never enough,” Mr Worner said.

Annual underlying earnings fell 9.9 per cent to $235.6 million, at the upper end of its $220-$240 million guidance range, and the media company has forecast five to 10 per cent underlying earnings growth in 2018/19.