Stocks of the Hour: Seven West Media, Seek & GWA Group

Company News

by Lauren Evans

Thanks for tuning in to Stocks of the Hour. I’m Lauren Evans. Our first investor event for the year is on Tuesday 22 February at 12.30 AEST with Shaw & Partner’s market strategist Martin Crabb, and three CEO's presenting. Make your way to to register for your free online spot.

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. Shares are trading 2.7 per cent lower at $0.72.

Seek (ASX:SEK) has lifted its interim dividend after posting strong sales and profit for the first half of the 2022 financial year. The online job platform’s sales revenue rose 59 per cent to $517.2 million, while profit jumped 152 per cent to $126.7 million as businesses recovered from Covid-related cuts. The company declared a first half interim dividend of 23 cents per share, its best one in three years. Shares are trading 7.4 per cent higher at $29.84.

Meanwhile supply chain disruptions, raw materials shortages and increased demand hurt sales in GWA Group (ASX:GWA). The company’s revenue grew 2.1 per cent to $201.3 million while EBIT increased 1 per cent to $30.2 million. The bathroom fittings company declared its highest dividend in two years despite this slight lift. Shares are trading 3.9 per cent lower at $2.50.

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