Television Ad Market Declines Sharply
Australia’s television advertising market dropped by up to 13% in October, reflecting growing concerns about consumer spending despite three interest rate cuts.
Seven West Media's Financial Challenges
At its annual general meeting on Thursday, investors expressed frustration with Seven West Media's long period without dividends and its weak share price performance.
Revenue Trends and Cost-Cutting Measures
Jeff Howard, CEO of Seven West Media—which owns Network Seven and The West Australian newspaper—reported flat television revenue for the three months ending September compared to last year, followed by a sharp decline in October.
In response to the revenue drop, the company increased its planned cost reductions from $35 million to $50 million.
"The media company recorded flat television revenue in the three months to September compared with last year, but had experienced a steep fall in October."
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Summary
The sharp fall in advertising revenue signals broader economic caution, prompting significant cost-cutting at Seven West Media amid stagnant earnings and disappointed investors.
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