Seven West Media posts lowest H1 EBITDA ever in final update
Jeff Howard addresses the crowd at the Seven Upfront
Seven West Media’s final financial results show a business struggling against the prevailing winds in media, posting its lowest first half EBITDA ever.
Southern Cross Media, which was Southern Cross Austereo and now incorporates SWM, released the H1 FY26 results to coincide with Seven Group Holding’s release of accounts (which also include SWM).
SWM’s EBITDA for the half of $67m was down 27% ($25 million) on the same period a year earlier, which management said was “in line with November AGM guidance”. While Seven warned investors of headwinds during its AGM, it didn’t put an explicit figure on the earnings fall.
Revenue was down 2.1% ($15 million) to $712m, with TV advertising revenue of $585m, which includes recently acquired Southern Cross regional TV licenses that saw Seven become the country’s biggest regional TV operator. Revenue for these licenses was down 0.8% ($5 million) on H1 FY25, and down 3.0% ($18 million) on a like-for-like basis.
The drop in TV revenue was credited to a “weaker than expected” advertising market in November and December, and the shortened Perth and Melbourne Ashes Test match broadcasts.
Operating costs were higher than TV advertising revenue, at $645m, up 1.6% on the prior period — attributable to entering year one of the highest-cost AFL broadcast rights deal, and the operating costs of the regional TV network — while the company’s net debt was decreased by $10m to $277m.
Seven’s publishing business “The West” saw EBITDA drop 5% to $14 million, with revenue of $84m down by 2%, which it credits to “challenging advertising markets partially offset by circulation, digital and event revenues.”
Southern Cross Media will announce its first half FY26 results on 24 February. For the audio arm of the company (SCA), EBITDA is expected to land between $39m and $41m, a 25%-30% on the first half of FY25.
The market cap of the merged entity is now around $311m, a fall of more than $100m (compared to SWM and SCA combined) since the announcement of the deal.
