Seven Network Faces Huge Profit Drop
- Seven Network, led by Kerry Stokes, faced a significant 69% drop in profits to $45 million.
- The decline followed a staff reduction and a revealing Four Corners documentary.
- The future outlook for Seven Network appears concerning amidst this financial setback.
Seven West Media, under the leadership of Kerry Stokes, has reported a staggering 69 percent drop in profits, plummeting to $45 million for the fiscal year. This downturn comes in the wake of serious allegations of bullying, sexism, and a toxic workplace culture, highlighted by ABC journalist Louise Milligan in her investigative piece, "Don't Speak." Managing Director Jeff Howard faced a challenging conversation with investors, acknowledging the difficulties of FY24 for the company and the broader media sector. Investor reaction to the financial results was tepid, with shares initially rising to 16.5 cents before closing at 15.5 cents, a significant decline from 40 cents a year ago. Howard emphasized that while Seven West Media boasts some of Australia's top media talent, certain employees have been asked to leave due to their actions not aligning with the company's values. This comes amid serious allegations in the Federal Court regarding the network's involvement in securing an interview through illicit means. The company's overall revenue fell by five percent to $1.4 billion, with net debt increasing to $301 million. The West Australia, a Perth title, reported flat revenue of $172 million, with pre-tax earnings down 13 percent. However, a positive development for Seven West Media was the launch of its digital masthead, The Nightly, which attracted a monthly audience of 2.3 million by June. Daily Mail Australia has sought comments from Seven Network regarding these developments.