Seven West Media Ltd (ASX: SWM)

Australia’s most-watched television network player, Seven West Media was one of the top performers on ASX 200 with a 7% rise in stock price on February 08, 2018. The stock has otherwise been beaten down with a 40.5% drop in last six months at the back of soft trading conditions.

The group had earlier stated to witness 2018 underlying EBIT to be in the range of $220m to $240m, which is in line with consensus, along with at least $50m of further cost savings to offset the step up in AFL rights costs.

Looking beyond FY2018, it expects revenue growth from its 100% owned digital platforms. On a related note, the group had bagged a new partnership with Newzulu Limited to build a new app which will allow Seven to gauge the power of their live audiences by collecting user-generated content at the largest sporting events for which they have broadcast rights. Further, production business earnings are also expected to grow. Particularly, Seven Studios is expected to drive value from assets in Australia and abroad, delivering double digit earnings growth, targeted for 2018. The launch of 7plus which is expected to accelerate growth across every screen and moves in addressable advertising, can be key to further impetus. Moreover, the group may get a boost from the renegotiation of its affiliate agreement at the end of FY2019 and this can drive higher revenues.

We believe that the stock trades on volatility and have a wait and watch approach with regard to any positives transforming up from the targets set for FY18 and beyond. At the moment, we have a “Hold” position on the stock at the current price of $0.535

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.