Australia's Seven West warns weak advertising to hit earnings
Louise Duffy ©RapidTVNews | 24-04-2012
Australian media company Seven West Media, which owns Seven Television, has warned its full-year earnings will fall short of expectations due to a soft advertising market showing no signs of improvement, according to Reuters.
"Based on conditions now becoming evident in all segments (TV, Newspapers and Magazines), the previous expectations of the market strengthening in the final quarter are unlikely to be met," Seven West said in a brief statement.
The company said it now expected earnings before interest and tax to be A$460-A$470 million, compared with consensus forecasts of A$517 million, according to Thomson Reuters.
Seven West was formed earlier this year by the sale of private equity-backed Seven Media to West Australian Newspapers Holdings. Kohlberg Kravis Roberts (KKR) owns 12.6% in Seven West Media, while Australian media baron Kerry Stokes' Seven Group Holdings holds 29.6%.