What is going on at Kerry Stokes’ 41% owned Seven West Media? There are some very mixed up messages coming out of the embattled broadcaster and newspaper owner. In fact, based on what slipped out on Monday in Perth it looks more like a proprietor-driven domination of the WA media than anything sensible.
Seven West Media shares crashed yesterday losing 10% to 50 cents at one stage and nudging the all-time low of 49.5 cents after a weak first half result and a weaker trading outlook for the rest of the financial year.
The fall out from last Friday’s trading updates from Nine Entertainment and Fairfax Media ahead of the release of the documentation for their planned takeover deal continued to batter the media sector yesterday on the ASX.
Seven West Media will pay around $75m per annum to broadcast simulcast cricket test matches and Big Bash with Foxtel. UBS believes the combination of cricket and tennis in FY19 could act as a catalyst for the Seven network and reverse underlying share declines.
Citi is lowering the company’s share of advertising revenue to 40% for the second half. The broker expects this share to be maintained into FY16 and then rising to 41% because of Olympic Games coverage.