Seven threatens Amber Harrison with legal action over remarks about Four Corners interview

Seven West Media has threatened to take Amber Harrison to court for alleged breaches of an injunction over comments she made about her interview being omitted from a Four Corners investigation into the media company.

This masthead understands a legal letter threatening contempt proceedings was issued to Harrison, a former executive assistant at Seven, on Wednesday morning as the company revealed a 69 per cent slump in full-year profits and flagged huge cost cuts to counter an advertising downturn.

On Tuesday, Harrison said an omission of a three-hour interview she conducted with the ABC’s Louise Milligan left a significant story untold after the flagship investigations program cut the footage at the eleventh hour on Monday night.

Seven West Media boss Jeff Howard.

Harrison is subject to an injunction taken out by Seven that prevents her from speaking about her experience at the network.

Seven’s Jeff Howard on Wednesday described his first financial result as chief executive of the Kerry Stokes-controlled company as disappointing and tough, reporting $45 million in net profit for the year to June 30. Falling advertising sales capped off a torrid year-to-date for the company commercially and in the public eye, including Four Corners highlighting current and historical issues around the network’s workplace culture.

Howard said Seven would be “materially increasing” its cost savings initiatives, with targeted cuts reaching $108 million this year to further offset the profit and revenue declines.

Seven has posted a “tough” full-year result.Credit: Gabriele Charlotte

Howard said he had set Seven on a new course since being elevated into the role in April, implementing a refreshed strategy and purpose, as well as a new structure, spitting the company into three divisions, with 150 staff leaving in the process.

The past few months had been a “pretty difficult time for our people”, he said, given the backlash against the company over cultural values. “So one of my key priorities has been ensuring our people are given the right platform and accountability to perform in a psychologically safe environment,” he said.

Despite an immediately challenged commercial outlook, Howard said he was excited about the prospects of digital video offered not only by Seven but the wider media sector amid a prolonged and much-publicised advertising downturn.

“If we create sustainability on the traditional side, and we absolutely pursue and deliver that growth opportunity from a digital perspective, then I don’t believe we’re at the start of a long, cold winter [for media],” he said.

Falling advertising sales and $44 million in one-off charges, including restructuring costs and write-downs for the value of TV programs, caused Seven’s total revenue to drop 5 per cent to $1.42 billion.

Seven West Media chairman Kerry Stokes.Credit: Trevor Collens

While he would not comment on the looming gambling advertising reform due to non-disclosure agreements, he said revenue from wagering firms was an important part of the company’s revenue profile.

Wagering advertising is a significant driver of media companies’ ability to buy and broadcast sports content, which also makes up a significant and rising portion of their cost base. Since 2022, Seven has spruiked new rights deals with the AFL and Cricket Australia that will finally allow it to show them on its digital platform, 7Plus.

Any cut to Seven’s ability to sell advertising in and around its extensive horse racing coverage, AFL season and cricket across the summer would have a noticeable impact on Seven’s future profitability.

Seven already achieved $25 million in savings in the second half of the fiscal year, cutting as many as 150 jobs in June.

Howard said it was “absolutely not the case” that audiences were collapsing across the network, or the sector more generally, saying a dip in ad dollars was partially offset by growth in overall commercial TV share to 40.2 per cent.

Advertising revenue for the commercial TV networks for the 12 months to June 30, published on Tuesday, totalled $3.28 billion, an eight per cent decline. However, with that figure at 7 per cent in the 6 months from January, Howard said declines in the market were “starting to moderate”.

Advertising income at Seven’s television segment fell 7 per cent, making up 80 per cent of the company’s total revenue.

Revenue at The West, Seven’s Perth-based newspaper group edged up 1 per cent to $172 million, however the publisher’s operating earnings fell 13 per cent to $27 million. Once again, no dividend was issued to shareholders.

After a steep drop on Tuesday afternoon, Seven’s share price closed up 3.2 per cent to 16¢ on Wednesday.

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