Seven West Media told investors the actions of some individuals do not reflect the business as a whole, as it reported a slimmed profit for financial year 2024.
Seven West Media told investors the actions of some individuals do not reflect the business as a whole, as it reported a slimmed profit for financial year 2024.
The Kerry Stokes-controlled enterprise reported statutory net profit after tax of $45 million for financial year 2024, down 69 per cent compared to FY23.
It posted group revenue of $1.41 billion, down from 5 per cent on FY23, and group EBITDA before significant items of $189 million, a decrease of 33 per cent.
On Monday night, ABC’s Four Corners aired an episode that revealed serious allegations against senior staffers from former employees at the Seven Network, which is owned by SWM.
Yesterday, SWM’s share price fell as much as 8 per cent.
On an investor call this morning, SWM managing director Jeff Howard wrapped up the presentation by thanking the team, before condemning and distancing the group from the actions of certain individuals.
“I want to be really clear that the actions of some individuals do not reflect the values, behaviour and attitude of the business as a whole, which is home to some of the best, hardest working and most passionate media professionals in Australia,” Mr Howard said.
“As I've said in a number of forums, a number of people who have displayed a behaviour that doesn't reflect SWM's values have already been removed from the company.
“Part of the changes we made, we are focused on building a stronger high performance-based culture that enables our great people to thrive and where unacceptable behaviour is not tolerated.”
In its results report to the market, Mr Howard said FY24 was a tough result for the group in a challenging market.
“While growth in audience and revenue share partially offset the impact of the weak market, cost growth of 2 per cent contributed to our EBITDA decline of 33 per cent, reflecting the operating leverage in our business," he said.
“Following delivery of $25 million of cost out initiatives in [the second half], we have taken decisive action to materially increase the program into the 2025 financial year to give SWM a platform to drive improved performance.”
In June, SWM announced an organisation restructure which involved a number of redundancies and cost-saving measures.
The restructure will split the group into three divisions, being The West Australian, Digital and Television, alongside a series of new management appointments.
In its results, SWM said The West “performed solidly, with headwinds in traditional print media offset by digital growth and commercial print opportunities”.
It said revenue of $172 million was broadly flat on FY23, while EBITDA of $27 million was down 13 per cent on the financial year.
The ASX-listed group said it was putting a dividend on hold “given current market conditions”.
Seven West Media shares were flat in early trade, at 15.5 cents. The company's share price has fallen more than 60 per cent over the past 12 months.
