Seven West Media reported a strong rebound in advertising revenue in the three months leading up to June.
Advertising revenue, including BVOD, is expected to grow more than 45% in the quarter compared to the same period in 2020, at the height of the economic fallout from the pandemic.
“Early indications point to continued positive momentum in the September quarter,” the company said in a business update.
Seven’s market report matches bookings from media agencies, which climbed 39.7 percent year-on-year to $ 584.4 million, according to the Standard Media Index (SMI). Television increased by 44%.
Seven’s BVOD consumption continues to grow strongly, with 7plus registered users growing 62% since the start of the year, compared to market growth of 50.7%.
7plus achieved a revenue share of 37.2% in the 10 months leading up to April, an increase of 5.8 percentage points from the previous corresponding period.
Digital profits continue to grow strongly, Seven digital is expected to contribute earnings before interest, taxes, depreciation and amortization (EBITDA) of over $ 60 million in the current fiscal year, up 130% from year over year.
Digital profits are expected to more than double in the next fiscal year.
The group now expects underlying EBITDA to be between $ 250 million and $ 255 million by June, against an analyst consensus of $ 235 million to $ 245 million.
Net debt at the end of fiscal 2021 is expected to be between $ 240 million and $ 250 million.
“The start of calendar year 2021 has been the riskiest time on the Seven Network’s calendar, with two unknown new formats having had mixed success,” the company told ASX.
“Since April, Seven has increased its TV audience share year over year on key demographics.
“Seven has won 12 of the 24 total weeks so far in the 2021 calendar and is on track to win a 13th week. For the evaluation year, Seven has won seven of 16 weeks so far and is a track to win an eighth week.
“With ratings come revenue: In April, the Seven Sales team got the first share of linear TV revenue. “
Seven is very confident in Seven’s schedule for the next six months, with the Tokyo 2020 Olympics and the Ashes Test Series.
In February, Seven West Media reported half-year after-tax net profit of $ 116.4 million on group revenue of $ 644.2 million, down nearly 10%.
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