Seven Hints At Web TV As 9 Unveils StreamCo
Seven West Media today reported revenues of $1.8bn – down 1.2% – for the financial year ended 28 June 2014.
However, the media giant delivered a healthy result, overall, and Seven’s Chief Media, Tim Worner also hinted at a new online TV platform, the same day Nine and Fairfax joint internet streaming platform was confirmed.
Seven’s net profits rose 313% to $149 million, after losses of $ 70 million were recorded in 2013. The FY14 result was slightly ahead of guidance.
Television led advertising revenues, nabbing a 40.5 per cent share of the total TV ad market as its broadcast channel Seven strengthened leadership. TV earnings grew 12 per cent in the second half.
Its publishing businesses, Pacific Magazines, also increased market share, and was ahead of peers, the company indicated.
Worner said: “this is a positive result in challenging market conditions. It underlines our strength as an integrated media company across broadcast television, publishing and new forms of digital delivery.
He said Seven’s objective is leadership in content delivery across media platforms and hinted at “new forms of distribution.”
This week, Fairfax reported Seven was in “advanced talks” with Rupert Murdoch’s Foxtel about collaborating on a video streaming product.
“We are making significant progress in putting in place the architecture for our future development, building our businesses and advancing our presence in new forms of distribution,” he confirmed.
Fairfax, for its part, has just confirmed its online streaming service StreamCo, a joint venture with Seven’s arch rival, Nine. It will launch in 2015.
“We will invest in our content to drive home leadership, but we are committed to continue to manage costs and if that means making tough decisions on content, we will,” Worner added.
Seven’s net debt declined 6.6 per cent over the year to $1.16 billion compared to the prior year’s $1.24 billion.