Money: Australia's Seven West Media cuts FY guidance on weaker market, shares dip - PressFrom - Australia
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MoneyAustralia's Seven West Media cuts FY guidance on weaker market, shares dip

19:07  21 may  2019
19:07  21 may  2019 Source:   reuters.com

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May 21- Australian free-to-air television broadcaster Seven West Media on Tuesday cut its annual earnings guidance citing softer market conditions The company also intends to reduce net debt by about A million in the year . Earlier this year , the company had clocked weaker interim earnings as

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Australia's Seven West Media cuts FY guidance on weaker market, shares dip© Reuters/Jason Reed The headquarters of media broadcaster/publisher Seven West Media in Sydney

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.

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Seven West Media has flagged a drop in full- year earnings, with the free-to-air network blaming a softer advertising market . Seven West says it expects underlying earnings before interest and tax for the 12 months to June 30 to be between 0 million and 0 million, compared to 5.6 million in

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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.

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