Stokes retained as Seven West chair

Billionaire Kerry Stokes has been returned as chair of the Seven West Media board at the company’s annual general meeting this morning.

The 83 year old’s successful bid to extend his time as chair of the media company, which publishes The West Australian newspaper and runs the Seven TV network, will take his tenure beyond 15 years to 2026.

He assumed the role in December 2009.

The resolution to re-elect Mr Stokes as Seven West Media chair was supported by 89.4 per cent of voting shareholders.

Non-executive directors Teresa Dyson and Michael Ziegelaar were also returned to the board with support above 91 per cent.

It comes following a challenging year for the media organisation, where underlying net profit fell by 27 per cent to $146 million off a 3 per cent slide in revenue to $1.5 billion.

Revenue at The West Australian was reported 1 per cent higher in FY23 at $171 million, though costs were up 3 per cent to $140 million.

Earnings before interest and tax slid 12 per cent to $29 million at the masthead.

The company’s financials, released in August, showed a 2.3 per cent drop in advertising revenue and a 1.1 per cent decline in circulation revenue.

Seven West managing director and chief executive James Warburton touted a 17 per cent uptick in digital subscription revenue this morning, reiterating a figure included in the company’s financial year results without providing underlying numbers.

Mr Stokes told shareholders that Seven West Media had performed across the board in challenging market conditions in his AGM address.

“Seven West Media performed well during the year despite a softening of the overall TV and wider advertising market, while our transformation to a broadcast, print and digital business has accelerated,” he said.

Digital was a focus at The West Australian as well, according to Mr Stokes.

“…The West’s print operations, with 21 titles across city and regional areas in Western Australia, continue to be enhanced by a compelling digital offering, with exclusive podcasts and other content tailored to largely younger audiences,” he said.

Mr Warburton said the paper would continue to focus on reducing costs and pursuing digital opportunities.

Seven West spent $15 million on an on-market share buyback initiative last financial year, funded via its debt facility, and will not pay its shareholders a dividend.

It last paid a dividend in 2017.

“As shareholders would know, we last paid a dividend in 2017 and paused in 2018 to focus on driving the business and repairing the balance sheet,” director Ryan Stokes told the AGM.

“While we have made significant progress on both fronts, uncertainty in advertising markets and prudence regarding leverage has meant we have taken a more conservative approach to reinstating the dividend.”

The company’s 2023 remuneration report, detailing the short- and long-term incentives offered to the executive team, was endorsed by 78.4 per cent of voting shareholders this year.

The report considered concerns raised in response to the previous year’s report, for which the company received a first strike under the Corporations Act when more than 25 per cent of eligible voting shareholders voted against the document.

Seven West also announced this morning that it had refinanced its debt facilities, downsizing from a $600 million facility to $525 million across a four-year term.

The debt facility was renegotiated with Grant Samuel as financial adviser and Ashurst as legal counsel.

Kerry Stokes was previously chair of Seven West Media’s parent company Seven Group Holdings but retired from the role in 2021.

He owns around 40 per cent of SWM through his investment vehicles and 57 per cent of Seven Group Holdings.

Seven West Media shares were trading down 3.5 per cent at 28c at 9.45am AWST this morning.