Home > Content > Seven’s Revenue Down 33% In Weak Ad Environment

Seven’s Revenue Down 33% In Weak Ad Environment

Seven West Media has revealed that its Free-to-Air (FTA) TV revenue in Q4 FY20 declined by 33%, citing the wider weak advertising environment caused by the COVID-19 crisis.

Over the whole financial year, advertising on Seven’s Metro FTA advertising revenue fell by 14.1%. As evidence of it being a tough operating environment, Seven still held 37.4% of revenue share in the market in the financial year.

While the FTA market was still down 15.8% year-on0year in July, Seven West Media reported that the rate had begun to moderate in Q1 FY21.

Overall, the group’s revenue was down 14% in FY20, with an EBITDA of $129.6 million.

Seven made notable progress in Broadcaster Video-on-Demand (BVOD), growing this market by 30.5% to $163 million in FY20. It also recorded digital revenue growth of 39.6%, driven by BVOD.

“Seven has won 10 of the last 11 weeks of ratings. Our seamless Digital strategy with 7plus has also seen us transition from a distant number 2 to a dominant number 1 in the growing BVOD market,” said James Warburton, Managing Director and CEO of Seven West Media.

“We continue to focus on transforming our business. Our objective is to establish a lean, efficient operating cost base to deliver further savings in the 2021 financial year and I am confidence we will deliver our strategy and ambitions for the future.”

Seven West Media’s share price has dived over 18% today following the announcement, standing at $0.127.

You may also like
Aust Network Infrastructure Market Recovers From COVID
CovidSafe App More Relevant Now, But Report Delayed
ACCC Probes TV And Furniture Toppling Hazards
Harvey Norman Airs Almost 57,000 Radio Ads In Year So Far
Retail Industry Groups Release Five-Point Plan To Save Sector