James Warburton to hand Seven West Media reins to current CFO Jeff Howard
Self-described ‘turnaround specialist’ James Warburton is leaving after more than four years at the Stokes-controlled media group, with an internal successor tapped to fill his seat.
James Warburton will hand over the reins at Seven West Media to current chief financial officer Jeff Howard by the middle of the next year, with the incoming boss bolstered by a strong sports portfolio but facing challenging advertising headwinds and an industry in the consolidation phase.
Mr Howard, who has been CFO since early 2020 and before that was in the same role at ARN media for almost a decade, will be called upon to deliver $60m in cost cuts over the next two financial years, as advertising markets remain challenging.
Mr Warburton was asked by The Australian if it was his decision to depart Seven West Media.
“Yes,” he replied. “I’m proud of the fact that we have got an orderly transition over the next six months.”
Multiple sources told The Australian that Mr Warburton was considering pursuing a new role in the private equity industry once he left the media company. He said by the end of the 2024 financial year, he would have led the company for “close enough to five years”.
“I feel very proud of what we have achieved as a business, and the business is in fantastic shape,” Mr Warburton said.
“We need the ad market to come back and bring back the operating leverage of the company, and Seven, particularly with the sports streaming rights coming, will be an even more unbeatable force than it currently is.”
He announced the $60m of cost cuts at the company’s recent annual meeting in November, when no mention was made of his future plans with the company. Mr Warburton is a media veteran and self-described “turnaround specialist’’. He spent a short time as chief executive of Ten Network before being sacked by its Lachlan Murdoch-chaired board after a year in the role in early 2013, and then spent about four years as CEO of V8 Supercars.
He returned to the Seven Network in 2019 as CEO of Seven West Media, replacing Tim Worner. He first joined Seven as a sales director in 2003 before being lured to Ten.
During Mr Warburton’s tenure as CEO at Seven, the company has repaired its balance sheet and returned to profitability after a loss in 2020. However, profit has been on the slide over the past three years.
Revenue improved and then consolidated under his watch, but remains well below the levels it attained in the five years before his appointment.
The stock is trading below the 38c level it was at when he took over in 2019, and the total annual shareholder return over the past three years is minus 8.8 per cent. Seven has had some wins, renewing its agreement to broadcast the AFL last year, delivering a strong performance with the FIFA Women’s World Cup this year and tying up a deal to broadcast cricket on free to air TV in Australia for the next seven years.
Seven West Media is also active on the corporate front, buying a 19.9 per cent stake in ARN media in November, while ARN itself and Antony Catalano’s Community Media are in a battle to take over Southern Cross Media. Many analysts and industry watchers believe consolidation is needed in the traditional media industry, which faces economic headwinds with weaker advertising and structural change.
Seven West and ARN Media – which counts News Corp, publisher of The Australian, as a 13.6 per cent shareholder – have held merger talks in the past.
Seven West Media said on Thursday that Mr Howard would “transition” to the role “on or before 30 June next year”.
“Jeff has an immense depth of experience and exposure across the broad media industry and the right balance of skills to deal with a dynamic and evolving media landscape,” Seven chair Kerry Stokes said.
“Having worked as SWM’s chief financial officer since January 2020, he is well positioned to continue the momentum created by James.
“His commercial knowledge, passion and commitment will ensure a strong performance focus at this critical time of change and innovation for the industry.”
Mr Howard said he was “delighted to be taking on the role”.
“James is leaving SWM in a strong position to take advantage of the opportunities that lie ahead,” he said.
“As we look to the next phase of growth in an ever-changing industry, our focus is on continuing to create great content to be the most connected news, sport and entertainment brand in Australia, while driving value for shareholders.
“Our strategy of premium audience generation and engagement across all of SWM’s platforms will remain at the forefront of everything we do,” he said.
The chairman thanked Mr Warburton for his contribution to the business over many years.
“On behalf of the board and our people, I would like to thank James for his energy, enthusiasm and outstanding contribution. James came to SWM at a difficult time and has been immensely successful in reinvigorating Seven’s ratings, strengthening the balance sheet and setting Seven up for future success,” he said.
Mr Warburton said: “It has been an incredible journey at SWM and with an exceptionally talented team in place, the time is right for the company to take the next step.
“I take great pride in the transformation of SWM in recent years and its position as the leader in total TV in both ratings and revenue.
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