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.
InvestSMART FORUM: Come and meet the team
We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.
Want access to our latest research and new buy ideas?
Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.Sign up for free