Seven flags FY earnings fall

21/05/2019 - 10:33

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Seven West Media has flagged a fall in full-year earnings of up to $25.6 million, which the Kerry Stokes-owned company blamed on a weak advertising market.

Seven flags FY earnings fall
Seven West Media owns the The West Australian.

Seven West Media has flagged a fall in full-year earnings of up to $25.6 million, which the Kerry Stokes-owned company blamed on a weak advertising market.

In a statement, Seven West said it expects underlying earnings before interest and tax for the 12 months to June 30 to be between $210 million and $220 million, compared to $235.6 million in the 2018 financial year.

"This revised guidance reflects the soft conditions and short market experienced across the advertising sector, and the economic uncertainty surrounding the federal election," Seven West said.

It said the net cost reduction for the financial year will be at the top end of the $30 million to $40 million range provided at its Half Year results in February.

The company said it remains focused on improving balance sheet flexibility and will reduce net debt by approximately $75 million this financial year.

It expects Seven Studios to achieve strong growth of earnings before interest and tax and 7Plus will increase revenue over 40 per cent this financial year.

Shares in Seven West were down 2.98 per cent to trade at 49 cents each at noonAEST.

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