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FY25 Half Year Results For personal use only
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Total TV audiences up 1.5%1. Strong BVOD audience growth (+43%) offset a modest linear decline (-1.8%) Total TV advertising revenue down -6% due to ongoing soft market (-5.4%) and major one-off sporting events (in line with AGM outlook) HY25 costs down 2%. Full year costs tracking to guidance of ~$20m - $30m down YoY with ongoing commitment to drive efficiency Digital sports rights driving step change in high value audience and revenue. 347,000 new 7plus users during cricket, ~70% in the key 18-54 demo. Q2 7plus revenue +23% Seven West Media 1H FY25 Results – 2 Seven increased total TV revenue share to 41.5% (+0.5 points), a record for a non-Olympic broadcaster HY25 outcomes Overview Seven's leading content, 7plus Sport and 7plus First driving audience and revenue momentum into H2 For personal use only
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Challenging market impacting performance Financial Performance INCOME STATEMENT HY25 $m HY24 $m Inc/(Dec) % Revenue, other income and share of net profit of equity accounted investees 727 775 (6%) Operating expenses (excluding depreciation and amortisation) (635) (651) (2%) EBITDA1 92 124 (26%) Depreciation and amortisation (21) (18) 17% EBIT2 71 106 (33%) Net finance costs (20) (19) 5% Profit before significant items and tax 51 87 (41%) Significant items before tax (21) (8) nm Profit before tax 30 79 (62%) Tax expense (12) (24) (50%) Profit after tax 18 55 (67%) Underlying net profit after tax excluding significant items 37 63 (41%) Seven West Media 1H FY25 Results – 3 For personal use only
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Statutory results Financial Performance SIGNIFICANT ITEMS HY25 $m HY24 $m Major IT project implementation costs (9) (11) Net costs of investments (14) (10) Programming Valuation Adjustment 1 - Restructuring costs - (2) Gain on change in lease terms - 15 Total significant items before tax (22) (8) Tax benefit 2 0 Net significant items after income tax (20) (8) ADDITIONAL INFORMATION Earnings per share based on net profit excl. significant items (net of tax) HY25 $m HY24 $m Inc/(Dec) % Group EBITDA 92 124 (26%) Group EBIT 71 106 (33%) Profit after tax excluding significant items 37 63 (41%) Significant items (net of tax) (20) (8) nm Basic EPS excl significant items 2.4 4.1 (41%) Diluted EPS excl significant items 2.4 4.0 (40%) STATUTORY RESULTS HY25 $m HY24 $m Inc/(Dec) % Profit before tax 30 79 (62%) Profit after tax 18 54 (67%) Basic EPS 1.1 3.5 (69%) Diluted EPS 1.1 3.5 (69%) CORPORATE & OTHER COSTS HY25 $m HY24 $m Inc/(Dec) % Revenue 1 - nm Costs (7) (8) (13%) EBITDA (6) (8) (25%) EBIT (6) (8) (25%) Seven West Media 1H FY25 Results – 4 For personal use only
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• Cashflow before temporary and capital items of $52m • YTD temporary and capital items for HY25 primarily relates to Phoenix which is now live for bookings • Net debt $260m vs $301m at June 2024 • Leverage (net debt/EBITDA) 1.7x • FY25 expectations: – Phoenix investment expected to be ~$14m, completing in 2H25 – Onerous provision reduced to $2m as cricket onerous provision fully utilised – Property changes (Melbourne / Martin Place) contributing to increased capex and expected makegood payments in H2 Cashflow Financial Performance CASH FLOW HY25 $m HY24 $m Inc/ (Dec) % EBITDA 92 124 (26%) Working capital and other movements, net of onerous and Phoenix 1 (9) nm Tax paid net of refund received - (13) nm Net payment for PP&E, leases and software (20) (17) 18% Net finance costs paid and other (21) (16) 31% Cashflow before temporary and capital items 52 69 (25%) Tax refund received - 24 nm Onerous contracts (1) (17) (94%) Phoenix (9) (11) (18%) Share buyback and refinancing costs paid - (7) nm Net payments for investments & loans issued - (67) nm Net decrease / (increase) in net debt 42 (9) nm Opening net debt (301) (249) 21% Change in unamortised refinancing costs (1) 1 nm Closing net debt (260) (257) 1% Seven West Media 1H FY25 Results – 5 For personal use only
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FY25 cost out program on track Managing Costs Responsibly 1,228 36 8 11 2% - 3% 108 1,200 - 1,210 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 FY24 Reported Onerous fully utilised Net Sports Rights Digital Opex (Incl. Phoenix) Inflation Cost-out Program FY25 Guidance Group Operating Costs (Ex D&A) - $m RELATES TO NEW AFL & CRICKET CONTENTS OFFSET BY FIFA WWC in PY Seven West Media 1H FY25 Results – 6 For personal use only
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• Seven total TV advertising revenue -6% in HY25 reflecting a weak advertising market and one-off sporting events (~$37m)1 • Total TV market -5.4% (metro -10.1%, regional -5.3%, BVOD +19.7%) • Q1 revenue decline of -8% moderated to -4% in Q2 as Seven’s premium sport drove audience and revenue improvement. 7plus revenue +23% in Q2 • Total TV revenue share 41.5% (+0.5 points), a record for a non- Olympic broadcaster. Revenue share of 43.8% in Q2 (+4.0 points YoY) rebounded significantly from 39.4% (-2.8 points) in Q1 • Other revenue decline includes Meta non-renewal • Costs tracking in line with guidance – Down 2% YTD cycling HY24 onerous cricket benefit of $16m – FY25 restructuring program continuing to identify opportunities Seven (Total TV) Segment Performance SEVEN HY25 $m HY24 $m Inc/(Dec) % Revenue Advertising Revenue – TV 505 556 (9%) Advertising Revenue – 7Plus 85 74 15% Other Revenue 51 56 (9%) Total Revenue 641 686 (7%) Expenses Media Content (341) (344) (1%) Personnel Costs (120) (126) (5%) Other (97) (100) (3%) Total Expenses (558) (570) (2%) EBITDA 83 116 (28%) EBIT 64 98 (35%) 1. Includes FIFA WWC (Seven pcp), and Olympic Games (Nine, estimate) Seven West Media 1H FY25 Results – 7 For personal use only
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• Content strategy mitigated Olympic impact in Q1. Driving growth in Q2 with launch of 7plus Sport • Audience (excl Olympics, FIFA WWC) up 1.5% YoY with modest decline in linear (-1.8%) offset by +43% growth on 7plus • Audience share of 41.1%; 43.4% (ex-Olympics)1 • Key content grew audience YoY - AFL, Cricket (Tests and BBL), My Kitchen Rules, Home and Away, The Front Bar, TV WEEK Logie Awards • Audience growth converted to revenue share growth to 41.5% (+0.5% points) • Content costs down 1% notwithstanding inflationary impacts and costs of new cricket contract without the benefit of the onerous provision ($16m HY24) Audience growth driving revenue share Optimise Traditional Assets 1. Source: Oztam 06:00 to 24:00 for H1 FY25 Seven West Media 1H FY25 Results – 8 For personal use only
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Premium sport – driving audience and revenue Optimise Traditional Assets / Deliver a Digital Future / Find New Revenue Streams and Opportunities • Leveraging AFL: new ancillary content in 2025 to "own the footy" all week on Seven and 7plus, driving incremental audience and premium revenue • AFL Grand Final was the largest audience since 2016; average audience of ~4 million, +6% YoY with 654,000 on 7plus (+44% YoY). Record 7plus revenue • Australia v India Test Series delivered record audiences, averaging >1m. Audiences +39% YoY • Big Bash League was the highest rating in five years with total audience up 21% YoY • Sri Lanka away Test series delivered strong audience on Seven and 7plus in prime time • The first T20 of the Women's Ashes series was Seven’s second highest ratings women's game ever • Strong cricket revenue growth (+16%) YoY driven by 7plus Seven West Media 1H FY25 Results – 9 For personal use only
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7plus– accelerating growth Deliver a Digital Future • 36% increase in total audience YoY (VOD +24% and live streaming +49%) • 7plus summer audiences up 79% YoY driven by summer of cricket • 347,000 new registered users streamed 7plus to watch cricket, ~70% high value 18-54 demo; ~60% of new users watching other 7plus content • 7plus First strategy commenced in H2 FY25. New premium content every month elevates 7plus as premium destination • Restructured digital team has step changed the go-to-market strategy, converting audience growth to revenue across live and VOD • AI Factory partnership with Databricks delivering AI led solutions that drive revenue, increase audience engagement and optimise inventory • Market leading customer data platform REDiQ, powered by ~15m Australians and multiple data partnerships, serving deterministic and predictive customer insights Sport driving audience and yield: post the AFL Grand Final, 7plus average daily audience has increased 11% and revenue has increased 22% Audience Revenue Premium Sport Driving Audiences and Revenue Base Incremental +22% +11% Seven West Media 1H FY25 Results – 10 For personal use only
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1. Source: Ipsos iris Online Audience Measurement Service, November 2023 to November 2024, Age 14+, PC/laptop/smartphone/tablet, Text only, Brand Group, Audience (000s) Page Views (MM) 2. Average weekly earnings data as at 15 August 2024, Wage Price Index (WPI), Department of Treasury WA, https://www.wa.gov.au/organisation/department-of-treasury/wages The West Segment Performance • The West continues to execute on its strategy: accelerate digital growth in audience and paying subscribers, hold the line on print and reduce costs • Strong growth in digital audiences: – 62.5 million monthly page views, up 10.6% YoY1 – The Nightly: 8.3 million page views in just its ninth month post launch. Strong growth in total unique audience since launch1 • Advertising revenue declined 8.0% YoY impacted by inflation and interest rate conditions. Supermarket sector primary contributor • Circulation revenue increased 1.3% due to strong performance of print circulation • Cost reduction YoY despite 3.5% YoY growth in wages in the WA market 2 THE WEST HY25 $m HY24 $m Inc/(Dec) % Revenue 86 89 (3%) Costs (71) (73) (3%) EBITDA 15 16 (6%) EBIT 13 15 (13%) Seven West Media 1H FY25 Results – 11 For personal use only
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Solid progress on strategy under new structure Strategy Update 1.Build a better, digital media business 2.Drive our own future 3.Redefine success 4.What next? Deliver a digital future • 7plus Sport launched, strong results to date • 7plus First strategy in place for 2025 • New digital sales leadership and team structure Creating a step change in high value audience and revenue growth opportunity Optimise traditional assets • Improving industry collaboration • Regulatory activity reflects criticality of FTA TV • Marketing projects with partners underway to demonstrate the effectiveness of total TV Driving to resilient earnings and cash flow from our market leading content and scale reach Find new revenue streams and opportunities • Investment in AFL ancillary programming to "own the footy" • The Nightly continues to grow audience, revenue and earnings AFL season launch in March will provide content over seven days on Seven and 7plus Manage costs responsibly • FY25 guidance maintained • Continuing to invest in opportunities to drive growth while maintaining cost guidance • Ambition: flat FY26 costs inc. AFL and inflation Aggressively managing costs, without compromising content and editorial quality Seven West Media 1H FY25 Results – 12 For personal use only
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Phoenix: growth through convergence Optimise Traditional Assets / Deliver a Digital Future / Find New Revenue Streams and Opportunities The future of effective total TV audience trading in Australia enabled by market-leading technology Salesforce + Landmark + Databricks AI + VOZ Enables customers to buy seamlessly and on a converged basis across metro, regional and BVOD; a step change in customer experience Ensures that every campaign is delivered in full, maximising the yield of every spot and eliminating over delivery / makegoods Bookings opened in December, go-live from 2 March 2025 Latest testing has demonstrated that a significant amount of inventory will be freed up through inventory optimisation Delivers national dynamic audience trading, a first for FTA / BVOD platforms in Australia Seven West Media 1H FY25 Results – 13 For personal use only
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Trading update Summary Seven West Media 1H FY25 Results – 14 • Market improving: Q3 bookings tracking up low single digits • H2 to benefit from AFL growth and Federal Election • Cost guidance ($1.2b - $1.21b) maintained for FY25 • Based on current expectations and market conditions, H2 earnings expected to see modest growth on H2 FY24 For personal use only
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Questions? Seven West Media 1H FY25 Results – 15 For personal use only
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SWM and its employees do not warrant the accuracy or reliability of this data and disclaim any liability flowing from the use of this data by any party. SWM does not accept any liability to any person, organisation or entity for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to variation. All forward-looking statements in this document reflect the current expectations concerning future results and events. Any forward-looking statements contained or implied, either within this document or verbally, involve known and unknown risks, uncertainties and other factors (including economic and market conditions, changes in operating conditions, currency fluctuations, political events, labour relations, availability and cost of labour, materials and equipment) that may cause actual results, performance or achievements to differ materially from the anticipated results, performance or achievements, expressed, projected or implied by any forward -looking statements. Unless otherwise indicated, all references to estimates, targets and forecasts and derivations of the same in this document are references to estimates, targets and forecasts by SWM. Estimates, targets and forecasts are based on views held only at the date of this document, and actual events and results may be materially different from them. SWM does not undertake to revise this document to reflect any future events or circumstances. Amounts, totals and change percentages calculated on whole numbers and not the rounded amounts presented. The information contained in these pages may not necessarily be in statutory format. Data included in this presentation is prepared for the management of Seven WestMedia Limited and its associated entities (together, ‘SWM’). This data is includedfor information purposes only and has not been audited or reviewed or subject to the same level of review by SWM as the statutory accounts and so ismerely provided for indicative purposes. Disclaimer Basis of Preparation Seven West Media 1H FY25 Results – 16 For personal use only