Seven West Media (ASX: SWM) has posted a resilient performance for the first half of FY25 in a challenging advertising landscape. While total group revenue dipped 6% year-on-year to $727 million, the company’s strategic content investments and cost management efforts have put it in a strong position to capture growth opportunities in the second half of the financial year.
Key to the company’s continued success has been its focus on driving audience growth and delivering high-value content across both traditional and digital platforms. Total TV audiences for Seven were up by 1.5% year-on-year, with digital platforms like 7plus seeing significant gains, a 43% increase in audience engagement. This offset a modest decline of 1.8% in linear TV viewership, showcasing Seven’s continued relevance in a fragmented media landscape.
Seven’s ability to adapt to changing viewer habits is exemplified by its strategic push into the digital space. 7plus Sport, launched with high-profile events like the AFL Grand Final, has quickly established itself as a major driver of viewership, attracting a new generation of sports fans to the platform. The AFL Grand Final, for instance, generated over 4 million total viewers, with 654,000 tuning in on 7plus, a 44% increase in the streaming audience. These numbers point to a step-change in both audience engagement and advertising potential.
Jeff Howard, managing director and CEO of Seven West Media, said: “Our clear objective is to stabilise and grow earnings and cash flow, irrespective of advertising market conditions.”
Driving revenue share and cost management
Despite challenges in the broader advertising market, Seven has successfully increased its total TV revenue share to a record 41.5%, up 0.5 percentage points from the previous year. Notably, Seven’s 7plus advertising revenue grew 15% year-on-year, contributing positively to the company’s overall performance.
While total TV advertising revenue fell by 6%, largely due to a soft market and the impact of major one-off sporting events like the FIFA Women’s World Cup (FY24) and the Olympics (FY25), Seven’s strong growth in digital and BVOD (Broadcast Video on Demand) provided much-needed balance. The company’s digital sports rights, including its AFL and cricket broadcasts, are key assets driving both audience reach and revenue generation. As Seven continues to evolve into a truly multi-platform media company, it is leveraging its content library and popular shows such as My Kitchen Rules, Home and Away, and The Front Bar to expand its digital footprint.
The company has also demonstrated prudent cost management, with operating costs down 2%, amounting to $635 million. This aligns with Seven’s full-year target to reduce costs by $20 to $30 million, enabling the company to maintain profitability even in a volatile market. Despite a 26% dip in EBITDA, Seven’s net debt decreased by $41 million, putting it on a stronger financial footing heading into H2 FY25.
Looking ahead: Strong outlook and strategic initiatives
Seven West Media says it’s optimistic about the second half of FY25, anticipating a recovery in the advertising market. With bookings for Q3 tracking slightly above last year, Seven expects a modest earnings increase for H2, driven in part by its strong digital offering and the upcoming Federal Election.
Seven’s ongoing investment in content and sports rights, particularly around the AFL and cricket, is set to provide continued growth opportunities in the second half of FY25. The company’s increased focus on 7plus Sport and new ancillary programs across the week is expected to attract high-value audiences and open new advertising opportunities.