Seven West Media warns on profit

Seven West Media’s annual earnings may drop by up to 11pc due to weak advertising and economic uncertainty.

Seven West Media CEO Tim Worner, left, and chairman Kerry Stokes. Pic: John Feder

Seven West Media has warned its annual underlying earnings may be down as much as 11 per cent, hurt by a weak advertising market and economic uncertainty caused by the federal election.

The free-to-air television broadcaster and publisher, controlled by billionaire Kerry Stokes, expects earnings before interest and tax to come in between $210 million to $220 million for the year ending June 30. That compares to $235.6m a year earlier.

Seven had forecast underlying EBIT growth of flat to 5 per cent in February in conjunction with its interim financial results.

Seven said the revised guidance “reflects the soft conditions and short market experienced across the advertising sector, and the economic uncertainty surrounding the federal election.”

“SWM continues to transform its business at pace, over-delivering on cost-savings and investing in strong growth areas,” the company told the ASX.

Seven also said its “net cost reduction will be at the top end of the $30 million to $40 million range” issued in February.

Seven shares were down 4 per cent to 48 cents in early trade.