Television Ad Market Declines by 13% in October
Australia’s television advertising market dropped by up to 13% in October, signaling weak consumer spending despite three interest rate cuts.
Investor Reaction and Company Performance
At the company’s annual general meeting on Thursday, investors expressed frustration over years without dividends and a stagnant share price, reflecting their dissatisfaction with performance.
Seven West Media’s Financial Update
Jeff Howard, CEO of Seven West Media—which owns Network Seven and The West Australian newspaper—reported that television revenue was flat for the quarter ending in September compared to the previous year. However, October saw a significant decline.
Cost-Cutting Measures
In response to the revenue drop, the company increased its planned cost reductions from $35 million to $50 million.
"Australia’s multi-billion dollar television advertising market plunged by as much as 13 per cent in October, in a worrying sign for broader business confidence about consumer spending despite three rate cuts."
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Summary: Declining television ad revenue has forced Seven West Media to deepen cost cuts amid subdued consumer spending and investor concerns.