Seven records profit, slashes debt pile, and sets sights on continued cost cuts
Seven West Media has reported a net profit of $116.4 million for the half year ending 26 December, and revealed it has slashed its significant debt pile by 42% to $329 million, landing in a “significantly improved financial position”. The group’s revenue was down 9.9% to $644.2 million for the six month period, driven by a lower TV revenue share and the ongoing effects of the COVID-19 pandemic.
Chief executive James Warburton also confirmed the media company’s $170 million cost savings program is on track, with a further $30 million in cuts identified, including “onerous sports contracts”.
At the end of last year, Seven escalated its dispute with Cricket Australia by lodging Federal Court proceedings, putting a question mark over the $450 million broadcasting deal Seven wants to pay less for. Mid last year, the TV network also struck a new deal with the AFL, resulting in $87 million of ‘net benefits’.