Kerry Stokes' Seven West Media expects a 10 per cent fall in full-year earnings as advertising markets in both TV and print show no signs of growth.
Kerry Stokes' Seven West Media expects a 10 per cent fall in full-year earnings as advertising markets in both TV and print show no signs of growth.
The owner of the Seven Network, The West Australian newspaper, and Pacific Magazines returned to profitability in the six months to December, though its earnings and revenue were weaker than in the same period a year earlier.
Seven West's half-year profit of $135 million compared with a $994 million loss a year ago, when it wrote down the value of its TV licence and newspaper and magazine mastheads by more than $1 billion.
The company said it had maintained its market leadership in metropolitan TV advertising, but the market had failed to grow, while ad revenue at The West Australian fell almost 15 per cent.
Chief executive Tim Worner said the metro TV ad market was set to remain flat in the second half of the financial year, while declines in publishing ad revenue would continue.
The company's full-year earnings before interest and tax are expected to fall 10 per cent from the previous year's $356 million, he said.
Despite the challenging media market, Mr Worner was confident Seven would continue to enjoy ratings success, which delivered a 38.5 per cent market share of total ad revenue.
That came despite high rating sporting events being shown on rival networks in the six months to December, including the Ashes and the Rugby World Cup.
"These events will not be repeated in the coming year," Mr Worner said.
"What we will have is the Rio 2016 Olympics on Seven."
The second half of the financial year is off to a good start due to the ongoing success of My Kitchen Rules and improved ratings for Seven News, he said.
Seven West Media shares were down 1 cent at 80.5 cents at 9am.
