Seven West swings to FY loss

Media group writes off almost $310m on magazine mastheads and investment in Yahoo!7

Seven West Media (SWM) has swung to a full-year loss of $69.7 million after taking impairments of almost $310 million on its magazine mastheads and Yahoo7!.  

The group sank to a net loss of $69.7 million for the year to June from a net profit of $226 million in the prior year, double what analysts were forecasting at $34.3 million.

It was dragged to a loss by $308.37 million in impairments of intangible assets, including $227 million on its magazine mastheads and $61.4 million on its investment in Yahoo7!

Full-year net income before significant items was flat at $225.2 million, in line with analyst estimates and slightly above its guidance.

Revenues also took a hit, falling to $1.86 billion in the period, from $1.93 billion the previous year. 

However, the group will pay a fully-franked final dividend of six cents, equal to last year's. 

The company owns the Seven Network, West Australian newspaper group and Pacific Magazines.

Seven West Media chief executive Tim Worner said the company had performed well in a difficult environment.

"Our television business continues to lead in both audience share and advertising revenue," he said.

"Our publishing businesses are out-performing their peers in what is a challenging market, delivering great content, managing their costs and building the framework for their moves into new forms of content delivery and revenue streams."

He said the company was focused on keeping costs down and strengthening its financial performance over the next 12 months.