Seven West Media Posts 6% H2 EBITDA Growth, 7plus Revenue Up 26%

Steady Recovery Amid Industry Challenges

Seven West Media Limited (ASX – SWM) has reported a modest but meaningful recovery in its financial performance for the full year 2025. The company posted a 6% increase in EBITDA in the second half of the year, marking its first half-year growth since FY22. This improvement was largely driven by a 4% rise in television EBITDA and a strong digital performance, particularly through its 7plus streaming platform.

Despite a 4% decline in total TV advertising revenue for the year, the rate of decline moderated significantly in the second half, falling just 1% compared to a 6% drop in the first half. Seven West Media’s total TV revenue share nudged up to 40.4%, continuing a five-year streak of share gains, underscoring the company’s resilience in a competitive and evolving media landscape.

Digital Growth and Regional Expansion

The 7plus platform emerged as a standout performer, with revenue growth of 26% for the full year and a remarkable 41% increase in the second half. Daily active users grew by 27%, while streaming minutes surged 41%, highlighting shifting consumer habits towards digital and on-demand content consumption.

Seven West Media also expanded its footprint by completing the acquisition of Southern Cross Media’s regional TV licences, instantly becoming Australia’s largest commercial regional broadcaster. This move not only broadens Seven’s reach but also sets the stage for the proposed merger between the two companies, which aims to create a more integrated and scalable media powerhouse.

The West Australian Segment Holds Steady

The West Australian division maintained steady EBITDA of $27 million despite a 2% revenue decline, driven by a 7% drop in advertising revenue amid challenging macroeconomic conditions. However, digital audience growth remained robust, with The Nightly digital platform increasing monthly page views by 60%. The segment also benefited from a 4% rise in circulation revenue, supported by strong home delivery sales and subscription price adjustments.

Looking Ahead – Merger and Market Conditions

Looking forward to FY26, Seven West Media anticipates a slight revenue decline of around 1% in the first half, with costs expected to rise by 3%, partly due to the integration of Southern Cross Media assets and AFL-related expenses. The company has expanded its cost-out program from $35 million to $50 million to offset inflationary pressures and improve operational efficiency.

The proposed merger with Southern Cross Media is subject to regulatory and shareholder approvals, including from the Australian Communications and Media Authority and the Australian Competition and Consumer Commission. If successful, the merger will combine complementary assets across free-to-air TV, streaming, audio, digital, and publishing, aiming to deliver enhanced content offerings and stronger financial returns.

Seven West Media’s management remains optimistic about capturing a greater share of the advertising market as economic and political uncertainties ease. The company is also focused on growing its digital audience and revenue streams, particularly through 7plus, while managing costs responsibly to improve cash flow and reduce leverage.

Board Changes Mark a New Chapter

The AGM also marked significant board changes, with Chairman Kerry Stokes AC announcing his intention to step down following the merger’s completion. He will be succeeded by Heith Mackay-Cruise as non-executive chairman of the combined entity. Several directors, including Michael Malone and Colette Garnsey, are retiring, while others will join the new board, signaling a refreshed leadership team ready to guide the merged company into its next phase.