<?xml version="1.0" encoding="ISO-8859-1"?> <docID>326500</docID> <postdate>2024-08-14 12:45:32</postdate> <headline>Profits plummet at embattled Seven West Media</headline> <body><p><img class="size-full wp-image-326507" src="https://citynews.com.au/wp-content/uploads/2024/08/20190219001385979183-original-resized.jpg" alt="" width="900" height="600" /></p> <caption>Seven West Media's CEO says the past year has been tough for the company and the sector in general. (Joel Carrett/AAP PHOTOS)</caption> <p><span class="kicker-line">By <strong>Liz Hobday</strong> in Melbourne</span></p> <p><strong>Major media company Seven West Media's statutory net profits have nosedived 69 per cent to $45 million for the full year.</strong></p> <p>Kerry Stokes' media conglomerate owns the Seven Network and Perth masthead The West Australian.</p> <p>Its television network was the subject of a Four Corners expose on Monday, airing allegations of bullying and sexism and a toxic workplace culture.</p> <p>The week has not improved for Seven, with pre-tax earnings falling by a third to $187 million.</p> <p>"There is no doubt that FY 24 was a tough year for Seven West Media and probably many in the sector," managing director and chief executive officer Jeff Howard told investors on a call.</p> <p>The company is home to some of the best media professionals in Australia, said Mr Howard, but some employees have been told to leave.</p> <p>"The actions of some individuals do not reflect the values, behaviour and attitude of the business as a whole," he said.</p> <p>"We are focused on building a stronger, high performance-based culture that enables our great people to thrive and where unacceptable behaviour is not tolerated."</p> <p>In April, the company's previous chief executive and managing director James Warburton stepped down earlier than expected, ending a tenure plagued by scandal.</p> <p>It followed allegations heard in the Federal Court that the Seven Network paid for illicit drugs and sex workers to secure an interview with former Liberal staffer Bruce Lehrmann.</p> <p>Less than a year earlier in June 2023, former elite soldier Ben Roberts-Smith resigned from his role as general manager of Seven West Media's Queensland operations.</p> <p>This was prompted by a Federal Court ruling that news reports he had committed war crimes were substantially true. The Victoria Cross recipient is waiting on a judgment in an appeal against these findings.</p> <p>In June, Seven West Media restructured into three divisions and implemented cost-cutting measures across the board as it tries to reduce costs by about $100 million.</p> <p>However, costs have climbed two per cent to $1.23 billion.</p> <p>One area of spending is artificial intelligence, with Seven West embedding staff from the AI company Databricks into its business.</p> <p>AI technology can accurately predict audiences on the streaming platform Seven Plus 28 days in advance, Mr Howard said.</p> <p>Overall, Seven West's group revenue is down five per cent to $1.4 billion on the previous full year, while net debt has climbed to $301 million.</p> <p>Perth titles The West had broadly flat revenue of $172 million with pre-tax earnings down 13 per cent to $27 million.</p> <p>A bright spot for the company has been daily digital masthead The Nightly, which launched in February and attracted a monthly audience of 2.3 million in June.</p> <p>After breaking even in its first six months it's expected the publication will make a profit in 2025.</p> <p>Seven's AFL broadcasting and this summer's cricket season, which features Australia against India, are also seeing momentum in advertising bookings.</p> <p>Seven West Media shares are trading around 16 cents, having dropped from 40 cents a year ago.</p> <p>No dividend will be paid to investors.</p> </body>