MoneyAustralia's Seven West Media cuts FY guidance on weaker market, shares dip
Market may get short-term election bounce
Australian investment markets will initially focus on the coalition's re-election this week before quickly turning to interest rates and global trade tensions.
Australian free-to-air television broadcaster Seven West Media today cut its annual earnings guidance citing softer market conditions, especially in the advertising sector, its largest moneymaker.
Seven's margins have come under pressure of late due to video streaming avenues such as Netflix and Amazon Prime.
The company's dependence on advertising revenue has also pressured earnings, as advertisers shift to cheaper and wider-reaching internet alternatives such as Alphabet Inc.
Seven now expects underlying earnings before interest and tax for the year to June 30 to be in the range of $AU210 million to $AU220 million ($US145.4 million-$US152.3 million), compared with its previous target of flat to 5% growth.
The election result just sent CBA and these ASX shares to 52-week highs
The Commonwealth Bank of Australia (ASX:CBA) share price was one of a number of shares storming to 52-week highs on Monday because of the surprise election result
Underlying EBIT for fiscal 2018 was $AU235.6 million.
Net cost reduction for fiscal 2019 will be at the top end of its $AU30 million to $AU40 million range, Seven said in a statement. The company also intends to reduce net debt by about $AU75 million in the year.
Earlier this year, the company had clocked weaker interim earnings as a drop in advertising revenue offset its cost-cutting measures.
Shares of the company were about 3% lower after the announcement, compared with a slightly weaker broader market.
Telstra CEO Andy Penn moves to cut 6,000 jobs this financial year — and investors are cheering.
Telstra boosted investor confidence in its 'T22' transformation plan on Wednesday after confirming that 6000 of the 8000 job cuts planned as part of the strategy will be locked in this financial year. The accelerated job cuts mean $200 million of restructuring costs will be brought forward to the current fiscal year. The company also announced $500 million in writedowns on its legacy IT systems. Investors saw the news as a positive sign the company is on track with the $2.5 billion worth of annual cost savings it promised the market at the launch of the T22 strategy last year.
Epic Cymru - Promo
Epic Cymru is a brand new 5-day MTB stage race heading to South Wales in August 2015. Full details - epiccymru.com.