Television Ad Market Dropped 13% in October: Seven West
Investors expressed frustration at Seven West Media’s annual meeting on Thursday, reacting to years without dividends and a persistently low share price.
Australia’s television advertising market, worth billions, fell by around 13% in October. The sharp decline raised concerns about weakening business and consumer confidence, even after three consecutive interest rate cuts intended to boost spending.
Seven West Media’s chief executive, Jeff Howard, explained that the company, which owns Network Seven and The West Australian newspaper, saw stable television revenue for the three months ending in September compared with last year. However, October brought a sharp downturn.
Jeff Howard said the company increased the scale of planned cost reductions from $35 million to $50 million due to the sudden drop in advertising revenue.
Howard added that the business remains focused on navigating a challenging market environment through aggressive efficiency measures.
Author’s Summary
The October downturn in Australia’s TV ad market pushed Seven West Media to expand its cost cuts, reflecting broader concerns about consumer and business confidence.