Seven West Media reports second-half gains from new strategy to accelerate growth

West Australian

a day ago

Seven West Media boss Jeff Howard says audience growth for The Nightly has been going 'gangbusters' and expects momentum from a positive second-half performance to continue into the 2026 financial year.
The national digital newspaper, launched 18 months ago, grew its monthly page views by more than 60 per cent during the 2025 financial year based on its strong editorial content, including through the Federal election. It also launched The Nightly On digital magazine series.
'The Nightly is going gangbusters . . . 80 per cent of The Nightly audience is now outside WA, which is really important and helping the broader organisation lean into how we continue to grow that product,' Mr Howard told The Nightly after delivering SWM's 2025 financial year results.
Mr Howard said that while the audience of The Nightly — a national publication that was launched out of Perth — was initially based in WA, the entire SWM sales capability was now lining up behind it. He said this brought more opportunities to promote the product and potentially other verticals.
'There's a broader objective for the east coast sales team to find a revenue target this year. We're already on the way to finding some of that, a long way to go, but I'm excited by the fact that we've got our platform, we've got the product, we've got the content people are engaging with, and we now just need to convert that into bucks,' Mr Howard said.
SWM is the owner of West Australian Newspapers, publisher of The Nightly, The West Australian, The Sunday Times and a suite of regional publications.
The diversified media company on Tuesday reported earnings before interest, tax, depreciation and amortisation grew 6 per cent in the last six months to June 30 while underlying net profit soared 33 per cent, marking the first half-year of growth since 2022.
Mr Howard described it as 'solid progress' against SWM's new operating model, which is focused on ensuring the company has the right resources to drive digital opportunities. He highlighted the 7plus streaming service as a 'standout performer'.
'That momentum change I think is happening,' he said.
Total TV audiences were up 1.1 per cent in the second half — suggesting content is resonating with viewers — while Seven's total TV advertising revenue was down only 1 per cent, driven by a 41 per cent surge in revenue for 7plus.
'We're almost on the verge of 7plus growth offsetting the broadcast TV decline, which will be a significant milestone, and certainly one that gives us a very different future when that happens,' Mr Howard said.
'Ex the two COVID years of '21 and '22, it will be the first time Seven West Media has a positive revenue growth story since FY17, so that will be a significant turning point.'
SWM said January to April total TV revenue grew by 'low single digits' — in line with February guidance — but the market post the Federal election was 'weaker than anticipated' and cost actions had to be undertaken to stem the revenue decline.
For the 2025 financial year, SWM reported a statutory net profit of $17 million on group revenue of $1.35 billion, with the latter figure down 4 per cent on the previous financial year. The rate of decline in the second half moderated to 2 per cent.
The West's digital platforms also reported growth, achieving a 4.4 per cent increase to 54.5 million monthly page views.
Earnings before interest, tax, deprecation and amortisation at The West were broadly flat compared to the previous financial year at $27m. SWM said this reflected 'strong execution on strategy by growing digital audiences and paid subscribers, leaning into print products, reducing costs and delivering new revenue opportunities'.
The newspaper reported a 3 per cent fall in revenue to $169m on the back of a 7 per cent drop in advertising revenue. This was partially offset by a 4 per cent increase in circulation revenue.
Mr Howard said the focus on the quality of content and events such as the Leadership Matters series, Resources Technology Showcase and Telethon reinforced the importance of The West and its digital platforms.
'That's what's driving the results and what's holding the revenue line both from an advertising perspective and the digital circulation growth and the circulation numbers that we're getting,' he said.
Mr Howard also credited the work of SWM WA chief executive Maryna Fewster and her team in keeping costs under control to offset revenue challenges.
Costs of $142m were down 3 per cent on the previous fiscal year.
Trading for the 2026 financial year has started solidly with good momentum going into the AFL finals, Mr Howard said.
However, he noted the first half would bear the brunt of an increase in AFL costs following the start of a new contract in March, as well as incremental costs from the acquisition of Southern Cross Media's regional TV assets.
'But overall for FY26 . . . I'm expecting that momentum to continue,' Mr Howard said.
SWM elected not to pay a dividend for the 2025 financial year. Shares were down 1¢ to 14¢ at 1pm.