Kerry Stokes has issued a reminder to Seven West Media shareholders that he will remain “close” to the media company, as he prepares to step down as chair.
Kerry Stokes has issued a reminder to Seven West Media shareholders that he will remain “close” to the media company, as he prepares to step down as chair.
Chair of Seven West since 2008, the billionaire’s departure from the role next year will be triggered when the merger of the business with Southern Cross Media Group is completed.
Subject to the deal’s passage of regulatory and shareholder approvals, Heith Mackay-Cruise will assume the mantle of chair of the combined company in February.
The deal will also dilute the Stokes family’s combined interest in the enlarged media company, taking it down to 20 per cent from the current 40.2 per cent it holds through the diversified business it controls, SGH.
Speculation has endured over what that would mean for the Stokes family’s involvement in Seven West, the owner of The West Australian newspaper and the Seven Network television assets.
But in his final address as chair of SWM, Mr Stokes was quick to remind shareholders that he would remain involved with the new entity – which would have expanded national reach through the addition of Southern Cross’ Triple M and Hit Network radio brands.
“While the proposed merger will close another chapter in my involvement in the media over the past 50-plus years, I will remain close to the new company as a special adviser to the board,” he said.
“And our family will continue to hold a significant interest as major shareholders in the merged group.
“My son Ryan Stokes will also remain as a director.”
Mr Stokes used his last AGM as chair to highlight his vision for expanded reach that would be afforded to the enlarged entity created by the combination of the two media companies.
“It will give us a voice, not through metropolitan areas but in every regional city in Australia, because Southern Cross’ radio network in the regions is the best in the country,” he claimed.
“When you put that together with our regional television, our regional news, you put that together with our capital cities and Southern Cross’ radio stations, we’re going to have a stronger company working together to take on the bigger groups.”
The deal comes off a period of poor performance by the media network.
Seven West’s net profit fell 63 per cent year-on-year from $45.3 million to $16.6 million in FY25, with revenue down 4.5 per cent from $1.41 billion to $1.35 billion – continuing a trend of decline over recent years.
The AGM was also marked by a first strike against Seven West’s remuneration report for the 2025 financial year, with more than 35 per cent of shareholders voting against it.
The shareholder vote is non-binding and came despite Seven West missing the targets it set for executives to take home short-and long-term incentives during the period, which meant they would not receive the bonus anyway.
Managing director Jeff Howard took home a base salary of $1.26 million for the financial year.
Directors Teresa Dyson and Michael Ziegelaar – who will step down post-merger, were re-elected.
Mr Stokes made his feelings known over the course of the meeting, sharing his belief that the current challenges were the result of revenue lost to offshore media.
“It’s pretty public, the challenges we’ve faced, particularly from the platforms that come in and steal our business,” he said.
“Let me give you an example of that. If you take Netflix and YouTube and platforms that are coming into Australia, they’ve taken out last year some $6 billion in revenue that would normally have been attributed to Seven and Nine, and Ten, and News [Corporation].
“We would have shared that revenue – it’s gone to external parties with no tax pay.”
The billionaire, who sits fourth on Business News’ recently published Rich 100 list, said he believed government was understanding of the company’s plight relating to international media businesses.
“If there’s something to be upset about, I think that’s the real reason,” he told a shareholder lamenting the eight-year absence of a dividend payment.
“We look to the government to help us ameliorate that, and the government’s sympathetic to that, it’s looking at what it can do.
“We’re pressuring very diligently to try and rectify and see how we can come back.”
Mr Stokes said he was sympathetic when pressed on the matter of dividends.
“I’ve had no dividends either,” he said.
Seven West shares remained flat this morning, at 14c.
