Seven’s broadcast TV revenue fell by $80 million in FY25 but 7plus does some heavy lifting.
BVOD has proven the bright spot in a challenging financial year for Seven West Media.
The company, which includes The West Australian, saw revenue drop by 4% to $1.35 billion.
Revenue for Seven network decreased by 5% to $1.18 billion. Broadcast TV revenue was down 8% to $80 million but BVOD revenue was up 26% to $34 million.
Profit was just $17m on $1.35b revenue.
SWM Managing Director and Chief Executive Officer, Jeff Howard, said: “FY25 has seen Seven West Media make solid progress under our new structure to kickstart growth, in line with our strategic plan. It is pleasing to report that we delivered earnings growth in the second half in line with our guidance. This improved performance mainly reflects the step change in 7plus audience and revenue, which is on the verge of offsetting the revenue decline in broadcast TV.
“Our investment in digital content including premium live sport and 7plus First programming has driven strong results for 7plus. We saw +27% growth in daily active users and +41% growth in streaming minutes over the year, which translated to digital revenue growth of +26%. Revenue growth accelerated in the second half, up +41%.
“The growth in our total TV audiences highlights that our content is resonating with viewers. In addition to strong growth in streaming minutes for our VOD library on 7plus, we continue to see strong engagement across all programming including 7NEWS, Sunrise, The Morning Show, our live and free AFL, Test and Big Bash League cricket coverage, and our entertainment programming including Home and Away, Australian Idol, The Voice, The 1% Club, Farmer Wants A Wife, Dancing with the Stars and My Kitchen Rules.
“The recent launch of Streamscape data by OzTAM reconfirms that total TV remains the dominant video platform for advertisers to connect with both targeted and mass audiences. The independent data covers video consumption for broadcast, BVOD, AVOD and SVOD, and is the foundation for Seven to drive more informed media planning and recapture advertising spend for our platforms.
“SWM successfully executed our expense reduction plan in line with guidance, achieving a -2% reduction in costs over the year. We continue to drive productivity and efficiencies without compromising content or editorial quality. FY26 will see a step up in AFL costs as well as incremental costs from the acquisition of Southern Cross Media’s regional TV assets. These assets deliver immediate earnings accretion.”
Every month, Seven Network reaches more than 17 million people nationally across the Seven broadcast signals and 7plus. Seven’s total TV audience was up 1.1% and +1.5% in the key 25-54 demographic. This includes +41% growth on 7plus (live streaming +62% and video on demand +21%), offsetting a modest -2% decline in broadcast.
Seven’s total revenue declined by -5% during the period to $1,184 million. Total TV advertising revenue fell $46 million to $1,081 million, reflecting the -3.2% decline in the advertising market. Broadcast advertising revenue declined by $80 million (-8%) to $915 million, while 7plus advertising revenue increased by $34 million (+26%) to $166 million. The decline in other TV revenue reflects the non-renewal of the Meta agreement from FY24.
The decline in the total TV advertising market of -3.2% was made up of declines in metropolitan markets of -7.0% and -5.8% in regional markets, offset by an increase in the BVOD market, which grew +18.9%.
Seven increased its total TV revenue share by 0.2 points to 40.4%, with FY25 the fifth consecutive year of growth.
TV operating expenses of $1,043 million were $25 million (-2%) lower than FY24. Media content costs were reduced by -2%, notwithstanding higher contracted sports costs (and the prior year benefit of $36 million from the onerous cricket provision relating to the previous contract term). Personnel costs declined -5% reflecting productivity and headcount initiatives under the revised operating model announced in June 2024.
TV EBITDA of $141 million and EBIT of $103 million declined by -18% and -26% respectively.