A robust TV advertising market underpinned Seven West Media
(ASX:SWM) in the first half of the financial year, with revenue and earnings soaring.
The company’s revenue rose 28 per cent to $820 million while net profit grew by 3.2 per cent to $120 million. The 2020 Olympic Games in Tokyo, The Voice and AFL grand final helped boost viewers and ratings growth.
The company has upgraded its full-year group EBITDA guidance to between $315 million and $325 million from its prior $260 million. Despite the stellar results, Seven West has not declared an interim dividend.
“This result reflects the successful execution of our strategy over the past 30 months. We have a television network that has returned to the #1 position in a robust advertising market; a fast-growing digital business that now makes up 35 per cent of earnings; a turnaround at WAN; and a team focused on growth," said chief executive officer James Warburton.
“We had an amazing start to the financial year with the Olympic Games Tokyo 2020, which was the biggest television and streaming event in Australian history."
"The Voice exceeded our expectations, becoming the #1 regular series of 2021, while the AFL Grand Final was the #1 program of the year. Our new entertainment schedule is driving television ratings gains and significant growth for 7plus."
Seven said over 11 million users are now registered on 7plus, and expect this to grow further with the Winter Olympics in Beijing.
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(ASX:SWM) are trading 2.7 per cent lower at $0.72.
