Seven hit with $444.4m loss as new CEO James Warburton says it will go on the hunt for mergers and acquisitions
Just days after Seven West Media announced its long-serving CEO Tim Worner would be leaving the business, replaced by James Warburton, the company has reported a loss after income tax of $444.4m on total revenue of $1.55bn.
The company found $38m in cost reductions across the financial year, but still has a net debt of $564.4m.
Seven struggled in FY19 following softening ad spend and a tough media landscape
That’ll smart. I bet Burnett is on a charm offensive right now.
Nothing like executing your CEO just days before annual results to deflect from just how bad they are…
Tim [Edited under Mumbrella’s comment moderation policy]
I am sceptical about an acquisition strategy for SWM for three reasons:
1. Surely announcing that you are a “buyer” of other businesses will push up the price they expect you to pay
2. The media industry is littered with examples of failed acquisition strategies that have created bloated businesses and destroyed shareholder value (HT&E anyone)
3. I’m not aware that Warburton’s previous CEO roles have involved successful acquisition strategies (unless you count being bought by someone else)
what a load of meaningless corporate twaddle from warburton re his rescue plan. Lovely platitudes and aspirations James, but what are you actually going to DO?