Seven Group and Austereo profits plummet
Kerry Stokes’ Seven Group Holdings half-year net profit has fallen 74 per cent to $68.48 million, weighed down by weaker commodity and media markets.
The diversified group warned that full-year pre-tax earnings were likely to be 10 to 15 per cent weaker.
The company kept its fully-franked dividend at 20 cents a share.
Meanwhile, broadcaster Southern Cross Austereo has suffered a 25 per cent slide in its first half profit amid weak TV advertising markets and falling ratings in its radio business.
Southern Cross, which owns the Triple M and 2DayFM radio networks, recorded a net profit of $34.7 million for the six months to December 31, down from $45.9 million a year ago.
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Chief executive Rhys Holleran said the company’s performance had been weighed down by a fall in market share for its metro radio stations and weak advertising markets for its regional TV business.
The broadcaster was left reeling last year in Sydney after the departure of the hugely successful Kyle and Jackie O from 2DayFm’s breakfast slot and the disappointing performance of their replacements Mel B, Sophie Monk, Jules Lund and Merrick Watts.
It remains cautious in its financial outlook for the rest of the financial year but says things have picked up early in the second half thanks to the success of affiliate Ten’s T20 Big Bash League and increased advertising linked to Queensland’s state election campaign.
“You can call that cricket and Campbell,” Holleran said, referring to the ousted Queensland Premier Campbell Newman.
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Mr Holleran is confident 2DayFm will be able to regain lost ground in 2015 with its new breakfast team of Dan Debuf and Maz Compton.
“We think that we’ve got the freshest young talent we’ve seen in a decade in regards to metro radio,” he said.
“We’re not making great predications that we are going to be first or second but we are looking for them to build and I am certain they will.”
Southern Cross also expects to receive a boost from the return of the popular Hamish and Andy to 2dayFm’s drive slot in July.
“We’re very mindful that this will take a bit of time for us to achieve but this is the best this building has felt in Sydney for a long long time,” Mr Holleran said.
“We’ve had the year we’ve had to have and away we go.”
The company also announced the appointment of Peter Bush as chairman, replacing the outgoing Max Moore-Wilton.
