Television Ad Market Dropped 13% in October: Seven West
Investors expressed strong dissatisfaction during Seven West Media’s annual general meeting, frustrated by years without dividends and a persistently weak share price.
Australia’s television advertising market, valued in the billions, fell by around 13% in October. The decline signals continuing concerns about business confidence and consumer spending, despite three recent interest rate cuts.
"The media company recorded flat television revenue in the three months to September compared with last year, but had experienced a steep fall in October," said Jeff Howard, chief executive of Seven West Media.
Seven West Media, which owns Network Seven and The West Australian, responded by expanding its cost-cutting measures from $35 million to $50 million to manage the downturn.
Key Takeaways
- Television ad revenue fell sharply in October by 13%.
- Seven West Media plans deeper cost reductions amid declining performance.
- Ongoing weak consumer sentiment despite multiple rate cuts remains a concern.
Author Summary
Seven West Media faces an advertising slump and investor frustration, prompting leadership to intensify cost-saving strategies amid declining market confidence.