Seven West Media (ASX: SWM) has unveiled its financial results for FY24, highlighting a challenging year for the company. The total linear audiences increased by a marginal 0.5% during FY24, while digital minutes saw a significant rise of 39%. However, the group revenue took a hit, decreasing by 5% to $1,415 million compared to FY23.

The total TV market was down by 8.2% in FY24, with a 2H decline of 7.2% compared to a 1H decline of 9.1%. Despite the market downturn, Seven West Media's total TV revenue share increased to 40.2%, up by 1.7 percentage points across the year, partially mitigating the market decline.

Costs for the company were at $1,228 million, marking a 2% increase on FY23 and in line with guidance. However, 2H FY24 costs were down 4% on 2H23. EBITDA was $187 million, down 33% on FY23. Net cash flow before temporary and capital items was $54 million, down 65%. Net debt increased to $301 million due to ARN investment; net debt reduced $15 million ex ARN investment. The leverage was 1.6x or ~1.3x ex ARN.

SWM Managing Director and Chief Executive Officer, Jeff Howard, commented on the results, saying, “FY24 is a tough result for SWM in a challenging market. While growth in audience and revenue share partially offset the impact of the weak market, cost growth of 2% contributed to our EBITDA decline of 33%, reflecting the operating leverage in our business. Following delivery of $25 million of cost out initiatives in 2H, we have taken decisive action to materially increase the program into FY25 to give SWM a platform to drive improved performance."

In response to the challenging results, Seven West Media has announced a new operating model for FY25, designed to support a refreshed strategy to meet the challenges and opportunities of the changing media landscape. The new structure aims to improve SWM’s ability to deliver its digital future which to date has underperformed revenue expectations. The cost out program will see costs decline in FY25 to a range of $1,200 million to $1,210 million.

Howard further elaborated on the new operating model, stating, “Our new operating model establishes clear accountability for driving our own financial destiny. We will build a better and more resilient media business that captures the clear opportunity in digital and maximises the financial returns in our traditional businesses. The change in structure and leadership allows us to leverage skills across the business and to embed a performance culture."

The Seven West Media Annual General Meeting will be held on 7 November 2024.