Write-downs push Seven into the red
The new boss of Seven West Media, Tim Worner, says the television and publishing group is working to overcome weak advertising markets after posting a $70 million full-year loss.
The company fell into the red in 2012-13 due to write-downs on the value of its magazine business, plus redundancy and restructuring costs, that totalled about $300 million.
The value of Pacific Magazines was reduced by $221 million, and Seven West's investment in the Yahoo!7 digital business was also cut by $60 million. Redundancy and restructure costs totalled $27 million, as part of the first phase of a cost-cutting program.
The company has cut staff at The West Australian newspaper, but has offered no detail on cuts in other businesses.
The cost cutting program delivered $71 million in benefits in the year, and further benefits are expected to be realised in 2013-14, Seven West Media said.
When one-off items are excluded, Seven West Media's underlying profit was $225 million, down 1 per cent from the previous year. Its shares rose 13¢ to $2.45.