Television Ad Market Declines by 13% in October
Australia's television advertising market, worth billions, fell by up to 13 percent in October. This drop signals concerns about overall business confidence and consumer spending, despite three recent interest rate cuts.
Seven West Media's Performance and Response
At its annual general meeting on Thursday, investors expressed frustration with Seven West Media due to years without dividends and a declining share price. The company, which owns Network Seven and The West Australian newspaper, reported flat television revenue for the three months ending September compared to the previous year. However, October saw a sharp decline in ad revenue.
Cost-Cutting Measures Implemented
In response to the downturn, Seven West Media increased its planned cost reductions from $35 million to $50 million to address the challenging market conditions.
"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."
Seven West Media chief executive Jeff Howard highlighted the flat television revenue for the quarter ending September and the steep fall experienced in October.
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Author's summary: The sharp 13% drop in Australia's TV ad market caused Seven West Media to heighten cost cuts amid investor concerns about stagnant dividends and share values.