Television Ad Market Declined Sharply in October
Australia’s television advertising market, worth billions, dropped by up to 13% in October, signaling concerns over consumer spending despite three recent interest rate cuts.
Seven West Media’s Financial Challenges
At its annual general meeting on Thursday, frustrated investors expressed discontent over years without dividends and a stagnant share price.
Seven West Media, which owns Network Seven and The West Australian newspaper, reported flat television revenue in the quarter ending September compared to the previous year but faced a steep revenue decline in October.
Company Response
In reaction to the advertising downturn, the company decided to increase its planned cost reductions from $35 million to $50 million.
Seven West Media chief executive Jeff Howard said the media company recorded flat television revenue in the three months to September compared with last year, but had experienced a steep fall in October.
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Summary
The sharp fall in television advertising revenue has forced Seven West Media to deepen cost cuts amid persistent investor frustration over financial performance.