Content producer Seven West Media (ASX:SWM)
has released better-than-expected guidance for FY21 underlying profit of between $250 million and $255 million, which represents a premium of $10 million to $15 million on market speculation.
The media conglomerate has justified the above-consensus forecast with increased viewer traction and revitalised income from advertising in the last quarter of the financial year.
The media firm’s advertising department has racked up 45 per cent more revenue, as Seven’s digital video platforms have contributed the most to the upsurge in proceeds from advertising. Recent trajectories are pointing to a continuation of this trend in the next fiscal quarter.
Seven’s viewership has also soared, as the company’s audience base has recorded successive annual growth. Seven’s television division has dominated ratings for seven out of sixteen weeks this year, while more people have tuned into the network’s tv programmes than any other station for half of the total 24 weeks so far in 2021.
The company’s digital push and streamlined operations have trimmed expenses and improved the company’s financial position, as the company is expected to record a decrease of $291 million to $301 million in net debt for FY21.
Shares in Seven West Media (ASX:SWM)
are trading 16.3 per cent higher at $0.46