Seven West Media (ASX: SWM) posted a solid performance for the first half of FY25 despite a challenging advertising environment. CEO Jeff Howard and CFO Craig Haskins spoke to Mediaweek about the company’s strategies for growth, its digital transformation, and the outlook for the second half of the year.
A resilient start focused on growth
Despite a 6% year-on-year dip in group revenue to $727 million, Seven’s focus on adapting to evolving market conditions is paying off. Howard highlighted the tough year-over-year comparison, largely due to the absence of big-ticket events like the Women’s World Cup and the Olympics.
“While total TV revenue was down 8% in Q1, we’ve seen strong performance in other areas. Seven Plus delivered a notable 23% growth in Q2, and we’ve been able to drive digital engagement effectively,” he said.
Seven’s strategic push into digital is a key factor behind the resilience in its first-half results. The launch of 7plus Sport has attracted a younger, digitally native audience, particularly with high-profile events like the AFL Grand Final. The game alone saw 654,000 viewers on 7plus, a 44% increase compared to last year.
“The clear objective remains to stabilise and grow earnings and cash flow, no matter the market conditions,” Howard emphasised, pointing to ongoing investments in sports content and leveraging high-profile shows across platforms.
Driving revenue and cost efficiency in a tough market
CFO Craig Haskins provided further insight into the financials, noting that while TV advertising revenue declined by 6%, Seven has been able to offset some of that impact through its growing digital platform, 7plus.
“The advertising market remains soft, and we didn’t have the major sporting events we had last year, which impacted the results,” he said. “However, we’ve been able to capture growth in our digital business, with 7plus growing advertising revenue by 15% year-on-year.”
Cost management has also been a priority, with Seven successfully reducing operating expenses by 2% year-on-year. “We’ve implemented a disciplined approach to cost management, targeting a reduction of $20 to $30 million for the full year,” said Haskins. “This is all part of our strategy to maintain profitability, even in a challenging market.”
Seven’s focus on operational efficiency has seen a reduction in net debt by $41 million, providing a stronger financial position as it heads into the second half of FY25.
Digital transformation and the future of BVOD
The company’s ability to drive audience growth, particularly through its digital platforms, was another key focus of the conversation. Seven saw a 1.5% increase in total TV viewership, but the real standout was BVOD, with 7plus recording a remarkable 43% increase in audience engagement.
Howard pointed to content as a key driver of this success. “We’ve been able to tap into high-value sports content, and the 7plus First strategy is giving audiences access to top shows and events earlier,” he said.
Haskins also emphasised the role of sports rights in driving this growth, with both AFL and cricket continuing to be central to the company’s strategy. “We’re not just focused on linear TV anymore; our strategy is multi-platform. With digital assets like 7plus, we’re able to reach more viewers and deliver more advertising opportunities, especially for high-profile events like the AFL.”
Optimism for the second half of FY25
Looking towards the second half of FY25, Seven remains optimistic. The company expects to see a recovery in the advertising market, with Q3 bookings tracking slightly above last year. The upcoming federal election is expected to be a boost for the company, along with continued growth in its digital and BVOD offerings.
“We expect to see modest growth in the second half of FY25,” Howard said, “particularly as our digital offerings like 7plus Sport continue to attract high-value audiences. The AFL and cricket content will remain key drivers for us, and we’re confident that the Federal Election will provide a lift.”
Howard also highlighted the ongoing focus on cost management. “We’ll continue to manage costs carefully to ensure we can reinvest in the content and technology that will drive future growth.”
Another key point for Seven has been its approach to evolving content to meet changing viewer habits. While the network’s news offerings remain the most-watched in the country, Seven has been experimenting with new formats and personalities to keep the audience engaged.
“We’ve seen that audiences are evolving, and we need to keep news content fresh and relevant,” Howard said. “It’s about staying connected with our viewers, especially as they increasingly turn to digital platforms. We’re experimenting with different styles to ensure we maintain our strong news leadership position.”