Postponing Tokyo Olympics and Paralympic Games expected to save debt-laden television broadcaster $70m

Seven West Media ‘disappointed’ but supportive as Olympics postponed by coronavirus.

Seven West media boss Kerry Stokes pictured with Seven CEO James Warburton in August 2019. Picture: Nikki Short

Seven West Media has backed the International Olympic Committee's long-awaited decision to postpone the Tokyo Olympics and Paralympic Games until next year because of the coronavirus, which is expected to save the debt-laden television broadcaster about $70m.

“While we are just as disappointed as anyone with the postponement of the Tokyo Olympics and Paralympics, the health and safety of the athletes, officials and spectators is paramount, which is why we absolutely support the decision taken by the IOC,” Seven boss James Warburton said in a statement on Wednesday.

Seven - which was betting the Olympic Games would deliver strong TV and streaming audiences, plus a boost in advertising revenue before the COVID-19 pandemic - said it's committed to working with its partners and supporters of the Games in light of the decision.

The comments come a day after The Australian reported that the Kerry Stokes-controlled company had met with its bankers before dumping its annual earnings guidance on Tuesday, but the lenders showed no interest in taking control.

The company is understood to have held talks with its banks after its interim results, with talks continuing.

Kurt Burnette, the media group's chief revenue officer, said it's "disappointed to no longer be able to offer our partners the incredible platform that Tokyo 2020 could provide".

“Our partners are just as disappointed as us, but completely support that the health and safety of the global community comes first. We’re already working together to explore all options and to help support them in reaching their key audiences now, when messaging is more important than ever,” Mr Burnette said.

The Tokyo Olympics and Paralympic Games are delayed until next year because of the coronavirus. Picture: Getty Images

Following mounting pressure around the world, the IOC announced in the very early hours of Wednesday that it has postponed the Tokyo Olympics, which were to begin on July 24, to some time next year. But "not later than summer 2021".

Seven joined a growing list of Australian media companies on Tuesday to dump its earnings guidance, as the coronavirus wipes out its ad revenue and marquee events, including the Australian Football League.

Seven, which was struggling before the coronavirus pandemic, on Tuesday warned that its visibility of future ad bookings was “now insufficient to provide meaningful earnings guidance for the remainder” of the 2020 financial year.

The company has a $541m debt pile, which equates to 2.4 times its underlying earnings, compared to a market capitalisation of around $100m.

Shares in Seven West Media were down as much as 1.5 per cent on Wednesday.