Seven West Media's Profits Fall Nearly 20% Due To Weak Advertising Market
Seven West Media's profit has fallen by 19.5% to A$166.8M ($131.6M) "as a weak advertising market rocks its print businesses and 'hinders' the performance of its Olympic Games coverage," according to Arvind Hickman of AD NEWS. The group's revenues declined 2.8% to A$1.68B ($1.33B), "largely due to drops in The West and Pacific Magazines." Seven booked a A$745M ($587.7M) loss due to A$989M ($780.2M) in "impairment charges as the business revised future growth assumptions across the group," such as the value of its TV license. Seven West Media CEO Tim Worner forfeited his bonus, saying, "It hasn't been a stellar year for the company." TV was the "strongest performing division," with Seven's revenues up by 1% to A$1.18B ($930.9M) in a "challenging advertising market that has declined by about 2.7% in the past year." However, the cost of covering the 2016 Rio Games "dented Seven's profitability." TV earnings dropped 14.4% to A$249.7M ($197M) due to a A$64M ($50.5M) "lift in costs." Seven Studios, which produces and distributes TV shows abroad, grew revenues by 11% to A$97.3M ($76.7M) (AD NEWS, 8/16).