Seven West Media's FY24 results overview

Seven West Media Limited (ASX: $SWM) released its FY24 results, reporting a 5% decrease in group revenue to $1,415 million and a 33% decline in EBITDA to $187 million. The company faced challenges due to the ongoing decline in advertising markets, partially offset by growth in Seven's revenue share of the total TV market. Operating cost growth was held to 2%, in line with guidance. The first phase of the announced cost reduction program delivered $25 million of savings in 2H, resulting in a 4% decline in costs compared to the same period in FY23.

SWM Managing Director and CEO, Jeff Howard's perspective on FY24

Jeff Howard, SWM Managing Director and Chief Executive Officer, acknowledged the tough result for SWM in a challenging market. He highlighted that while the weak market impacted the company, growth in audience and revenue share partially offset this impact. The 2% cost growth contributed to the 33% EBITDA decline, reflecting the operating leverage in the business. Howard emphasized the decisive action taken to significantly increase the cost reduction program into FY25 to improve performance. He also mentioned the company's commitment to driving improved profit and cash flow, irrespective of market conditions, and the focus on capturing a greater proportion of available dollars in each market, including a step change in digital revenue performance.

Outlook and priorities for FY25

Looking ahead, SWM aims to capture a greater share of advertising dollars in each market, focusing on a culture of cost discipline across the business. The company is committed to driving a greater share of advertising dollars in each market, including a step change in digital revenue performance. The new operating model for FY25 is designed to ensure SWM meets the challenges and opportunities of the changing media landscape. The company expects revenue share gains in FY25 from digital sports rights and anticipates a full-year cost reduction compared to FY24. SWM will be hosting a teleconference to provide further details and will be focusing on the FY24 Annual General Meeting scheduled for 7 November 2024.