Seven West Media’s debt facilities have been extended and secured via a security deed, reports UBS.
The revision of its AFL contract will lead to cost savings of $87m over the existing term, highlights the broker. There will be permanent cost savings of $170m, mostly in FY20-21 and across both TV and print.
There will also be temporary cost savings in FY20 worth $50m. The company will be reporting its results on August 25.
UBS maintains its Neutral rating with a target price of $0.12.
Target price is $0.12.Current Price is $0.11. Difference: $0.01 – (brackets indicate current price is over target). If SWM meets the UBS target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).