Seven West Media has posted a full-year loss of $744 million on almost $1bn in write-downs, compared to a profit of $184 million the previous year. The company’s total revenue was down 2.8%, to $1,679m.
In a statement, Seven said "revised market growth assumptions" were impacting the value of its television, newspaper and magazine businesses.
Seven’s Pacific Magazines business suffered a 28 % decline in revenue from $56 million to just $40 million, with earnings before tax plunging more than 60% from $9 million to just $3.5 million.
“This has been a challenging year, there is no doubt about it, market conditions have not been easy but our transformation continues at pace,” says Seven West Media CEO Tim Worner, who lost his bonus as his pay for the year was cut to $2.74 million.
“Over the last nine months Pacific has executed its own transformation plan, furthering its evolution as an audience centric business, with a path to increased profitability,” according to Worner. “The Pacific portfolio of titles has been sharpened to achieve maximum penetration and reach while driving 15% of cost out of the business.”
CFO Warwick Lynch says the Pacific business has undergone significant portfolio restructuring which commenced in September 2016. Digital revenue from Pacific Magazines climbed 26% to $16.8m.
“Magazines EBIT was $3.5 million. I note that if the restructure of the magazine portfolio had been in place for the full 12 months, EBIT would have been $7.3 million, down 19.8% on a like for like basis," says Lynch.
Seven says investment in ‘new, more efficient publishing systems’ will allow the business to deliver more 'premium content.’