Channel Seven takes crushing blow to profits as they dip by a staggering amount after staff bloodbath and bombshell Four Corners expose
As a dedicated follower of media industry for several decades now, I’ve seen my fair share of ups and downs, but Seven West Media’s recent financial performance has left me scratching my head like an old man trying to figure out TikTok dances. With profits plummeting by 69% and pre-tax earnings taking a nosedive, it seems the good old days of “Sunrise” and “Home and Away” are long gone.
Seven West Media, led by Kerry Stokes, suffered a significant setback as their annual profits plummeted by 69%, down to $45 million.
On Monday, a Four Corners investigation focused on the media properties owned by the group, including the Seven Network, the West Australian newspaper in Perth, and its associated television network.
ABC award-winning journalist Louise Milligan aired allegations of bullying and sexism and a toxic workplace culture in the bombshell investigative piece Don’t Speak.
Ever since that point, my journey has been marked by a steady decline, and even the much-anticipated Wednesday results for the 2023/24 fiscal year showed a troubling decrease. Pre-tax earnings took a significant hit, dipping a third to $187 million.
In response to the recent outcomes, the managing director and CEO, Jeff Howard, found himself in a heated conversation with shareholders.
It’s clear that Seven West Media faced challenging times during FY24, and it seems likely that other companies within the industry experienced similar difficulties, as stated by Mr. Howard.
Initially, investors showed a subdued reaction as the share price increased by up to 16.5 cents following the announcement of the results, but later dropped and ended the trading session at 15.5 cents.
The stock was trading at 40 cents a year ago and has fallen by more than 60 per cent since then.
Seven West Media houses some top-notch media talent from Australia, as mentioned by Mr. Howard, however, certain staff members have received notices to vacate.
He stated that the conduct of certain people doesn’t align with the overall values, behavior, and mindset that represent the company as a collective entity.
Our goal is to foster a robust, results-driven environment that empowers our outstanding team members to flourish, while intolerating behavior that falls short of our standards.
James Warburton, the former CEO and MD of the company, left his position ahead of schedule in April, bringing an end to a leadership term marked by controversy.
The Seven Network is under scrutiny following claims, aired in the Federal Court, that they purchased illegal substances and services from sex workers to obtain an interview with ex-Liberal staffer Bruce Lehrmann.
Approximately a year ago, in June 2023, the former elite soldier, Ben Roberts-Smith, stepped down from his position as the head of Seven West Media’s Queensland division.
Based on my years of working as a journalist and my commitment to truthful reporting, I can confidently say that the court ruling substantiating reports of war crimes committed by this individual leaves me deeply troubled. The gravity of these allegations, if proven true, would have far-reaching consequences for the accused and the international community. As someone who values justice and accountability, I find it disheartening to see such accusations leveled against anyone, but especially against those who hold positions of power. This serves as a stark reminder of the importance of upholding human rights and the rule of law, even in times of conflict.
The Victoria Cross recipient is waiting on a judgement in an appeal against these findings.
In June, Seven West Media underwent a reorganization, dividing into three main sectors, while implementing broad cost-saving strategies aiming to trim expenses by approximately $100 million.
However, costs have climbed two per cent to $1.23 billion.
One area of spending is artificial intelligence, with Seven West Media embedding staff from the AI company Databricks into its business, Mr Howard revealed.
30 days ahead, artificial information technology is capable of making precise predictions about the audience on the streaming platform Seven Plus, as stated.
In summary, Seven West Media’s total earnings decreased by 5% compared to the last fiscal year, amounting to approximately $1.4 billion. Simultaneously, their net debt rose to about $301 million.
“The West Australia reported a mostly unchanged income of approximately $172 million, with pre-tax profits decreasing by about 13% to around $27 million.”
One of the positive aspects for the company was its new daily digital publication called “The Nightly,” which debuted in February and garnered an audience of 2.3 million per month by June.
After breaking even in its first months, it’s expected The Nightly will make a profit in 2024/25.
As a devoted enthusiast, I can attest that my interest is growing not only in the exciting sports coverage provided by Seven Network for the AFL and the upcoming cricket season featuring Australia versus India, but also in the increasing number of ad bookings these events are attracting.
No dividend will be paid to Seven West Media investors.
Daily Mail Australia has reached out to Seven Network for comment.
Following the layoffs at Seven West Media, approximately 150 editorial positions were eliminated, resulting in the departure of prominent figures such as newsreader Sharyn Ghidella from Queensland and longtime weatherman Paul Burt.
As a devoted supporter, I’m sharing that Anthony De Ceglie, who recently took on the role of news and current affairs head at Seven Network, is swapping out section leaders from different parts of the country with fresh, younger management.
He has also introduced a Friday night comedy spot and astrology to the news.
As a lifestyle expert, I’m thrilled to share some exciting updates! In the dynamic cities of Sydney, Melbourne, and Adelaide, we’ve got fresh faces at the helm as news directors. Moreover, new executive producers are stepping up to lead Sunrise, Weekend Sunrise, and Spotlight, respectively. It’s an exhilarating time for these shows, with fresh perspectives and innovative ideas on the horizon!
In a wave of cost reduction, veterans such as Robert Ovadia, Andrew Frampton, and longtime Melbourne crime journalist Cameron Baud (nicknamed ‘The Harvester of Sorrow’ for his dark reporting) were let go from their positions.
As a devoted follower, I’m sharing that one of the prominent personalities, Ovadia, who was among those dismissed prior to Ghidella, has declared his intention to bring Seven West Media to the Fair Work Commission, alleging wrongful termination.
Previously, it was reported by Daily Mail Australia that Ovadia is said to have transmitted an odd collection of manipulated pictures to a young female journalist, prior to his termination.
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2024-08-15 03:19