Television Ad Market Declines by 13% in October
Australia’s television advertising market decreased by up to 13 percent in October, signaling concerns about overall business confidence and consumer spending, despite three recent interest rate cuts.
Seven West Media's Financial Performance
At the company’s annual general meeting, investors expressed frustration over years without dividends and a stagnant share price. Seven West Media, owner of Network Seven and The West Australian newspaper, reported flat television revenue in the three months ending in September compared to the previous year, followed by a sharp decline in October.
Cost-Cutting Measures
In response to the falling revenue, the company increased its cost-reduction target from $35 million to $50 million.
“The television advertising decline prompted us to expand our cost cuts to $50 million,” said Jeff Howard, Seven West Media’s chief executive.
Investor Reaction
Investors at the AGM voiced disappointment over the company’s prolonged lack of dividends and the underperforming share price, reflecting broader market anxieties.
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Summary: Seven West Media faces investor pressure after a 13% drop in TV ad revenue led to increased cost cuts, highlighting challenges in Australia’s advertising market amid uncertain consumer spending.