Seven suspends dividend for another year

09/11/2021 - 10:51

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Seven West Media trimmed net debts by 40 per cent, flagged ratings growth and booked a $318 million profit during FY21 but has held out on paying a dividend to shareholders.

Seven suspends dividend for another year
The media company enjoyed a solid performance during FY21. Photo: Attila Csaszar

Seven West Media trimmed net debts by 40 per cent, flagged ratings growth and booked a $318 million profit during FY21 but has held out on paying a dividend to shareholders for the fourth year running.

Speaking at the company’s AGM this morning, Chair Kerry Stokes told investors his company was “doing something for ordinary shareholders by improving performance” when asked whether a payment to retail investors was on the cards.   

Mr Stokes said the board intended to review the reinstatement of dividends next year but did not pin down a date or likely outcome of the review.

Dividends from Seven West have been on the decline since 2011, at which time shareholders were paid out 41 cents for every share held.

This dropped down to 0.04 cents per share in 2017 before ceasing entirely that year.

Seven West reiterated the stronger performance reported in its full year financials earlier this year in its virtual AGM today which included increased revenues of roughly $1.2 billion and $318 million in net profit after tax.

Net debts sit at $240 million compared with $398 million in FY20 with the company refinancing its owings at the end of last month.

The company claimed $25.7 million in JobKeeper payments during the year.

Investors are set to vote on the company’s proposed $131 million acquisition of regional television broadcaster Prime Media Group in December.

Seven West has held top ratings spot for 26 weeks this calendar year so far.

Shares in Seven West Media are up 4.63 per cent at 1:13pm to trade at 56 cents.

 

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