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SEVEN WEST MEDIA LIMITED (SWM)

SEVEN WEST MEDIA LIMITED (SWM)

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General Information
Company Name: Seven West Media Limited
Stock Code: SWM
Website: www.sevenwestmedia.com.au
GICS Sub-Industry: Publishing
Market Cap ($M): 1,659
Equiv. Shares (M): 666

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 2.490 $ 2.540 $ 2.550 $ 2.470 $ 2.530 1,999,440 $ -0.040  -1.581 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 25th May 2012
12 Month Target Price (average): $3.578
Brokers Surveyed: 8

Company Overview

Business Description:
Seven West Media Limited (SWM, formerly West Australian Newspapers Holdings Limited) is the national multi-platform media business based in Australia. SWM’s medias comprise Seven Television, Pacific Magazines, Yahoo!7 internet platform, the West Australian and associated WA regional newspapers, and radio stations.

Strategy Analysis:
To deliver quality media content and so capture the highest number of viewers in the FTA market while retaining market share dominance of the West Australian newspaper industry. The development of 7Mate for a younger male demographic and 7Two for an older demographic illustrates the ability of Seven to diversify away from its core brand to capture the ever changing viewer habits of the consumer. Seven West Media reported NPAT up 19.6% to $115.12m for the year ended 30 June 2011. Revenues from ordinary activities were $725.69m, up 77.6% from last year. Diluted EPS was 37.5 cents compared to 45.0 cents last year. Net operating cash flow was $140.95m compared to $103.44m last year. The final dividend declared was 26 cents, taking the full year dividend to 45 cents compared with 45 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 230.1 37.7 -5.8 6.6 28.0 11.2 100.0
2012  F 244.3 40.0 -21.8 6.2 30.0 12.0 100.0
2011  A 312.4 51.2 26.8 11.9 45.0 7.4 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
APN (APN) $506 M -0.2264 -0.0687 0.0127 6.1563 6.6102 6.5272 0.1090 0.0900 0.1026
Fairfax Media (FXJ) $1,505 M 0.0634 -0.3347 0.1445 5.3024 7.9701 6.9641 0.0469 0.0472 0.0688
Seven West Media (SWM) $1,685 M 0.0242 -0.2734 0.0099 5.4893 7.5545 7.4808 0.1779 0.1351 0.1331

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
SWM 0.60 7.18 0.60 10.00 1.05
Market 0.80 12.1 1.33 1.35 1.68
Sector 0.96 8.41 1.20 6.45 0.86

Directors
Name Position Start Date
Mr Ryan Kerry Stokes Alternate Director   
Mr Bruce McWilliam Alternate Director   
Mr Chris Wharton Chief Executive Officer 15 December 2008
Mr David John Leckie Chief Executive Officer,Managing Director 16 May 2011
Mr Peter Joshua Thomas Gammell Non-Executive Director 25 September 2008
Mr Graeme Thomas John Non-Executive Director 03 December 2008
Mr Douglas Ronald Flynn Non-Executive Director 06 August 2008
Mr Samuel Maurice Cossart Walsh Non-Executive Director 11 December 2008
Mr Donald Rudolph Voelte Non-Executive Director 11 December 2008
Mr Justin Reizes Non-Executive Director 19 April 2011
Mr Edward James MacKinnon Bostock Non-Executive Director 25 August 2011
Mr Kerry Matthew Stokes Non-Executive Director,Non-Executive Chairman 25 September 2008

Management
Name Position
N Chan Chief Executive Officer Pacific Magazines
KJ Burnette Chief Sales & Digital Officer
BI McWilliam Commercial Director
Peter Bryant Company Secretary,Chief Financial Officer
TG Worner Director of Programming & Production
BA McCarthy Editor, The West Australian
LM Roche General Manager - Group Operations and Information Technology
RA Billington General Manager - Marketing and Circulation
PJ Lewis Group Chief Financial Officer
DM Bignold Sales Director

Substantial Shareholders
Holding Name
69,288,792 (11.35%) The Trust Company Limited
34,814,584 (5.70%) Ausbil Dexia Limited
180,467,446 (29.57%) Seven Groups Holdings Limited (formerly Seven Network Limited)

Calendar of Events
Date Event
20 February 2013 Report (Interim)
21 September 2012 Report (Annual)
22 August 2012 Report (Prelim)
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