Share To Buy – Seven West Media (SWM)

Seven West Media (SWM) is a multi-platform media business based in Australia.

The business comprises Seven Television, the Yahoo!7 internet platform, Pacific Magazines and The West Australian newspaper and several  radio stations.

The group is divided into four divisions, which include: Television, Newspapers, Magazines and Other activities.

Key Points

FY 13 Results: Revenue for the year was $1.86 billion, a 3.7% decline on the prior year,  FY13 underling net profit came in at $220.5 million, a 0.8% decline on FY12, but ahead of the 2% to 4% declines it previously guided, Strong EBITDA margins maintained at 26%.

The groups operating cash flow impressed, coming in at $342.6 million, a 58.6% jump on the prior year, the group paid back $441.5 million in debt, with no debt maturing until October 2015 and a final dividend of six cents per share was declared bringing total dividend to be paid by the company for the 2012-2013 financial year to 12 cents per share.


SWM’s has been under significant pressure over the last few years, with debt pressures leading to several equity raisings. However the company seems to be turning its fortunes around.

It has undertaken several costs and revenue initiatives, with the group achieving $71 million in savings over the past year, ahead of its own target of $60 million.

The group is trading on 10.6 times next year’s earnings, while its peers on average trade on close to 16 times. We can see this gap closing if the company keeps on meeting its costs cutting targets and reducing its debt levels.

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