Television Ad Market Declines Sharply in October
Australia's television advertising market dropped by up to 13% in October, reflecting growing concerns about consumer spending and overall business confidence despite three recent interest rate cuts.
Performance Impact on Seven West Media
At its Annual General Meeting (AGM) on Thursday, Seven West Media faced criticism from investors over stagnant dividends and a weak share price. The company, which owns Network Seven and The West Australian newspaper, reported flat television revenue for the quarter ending September compared to the previous year, followed by a sharp revenue decline in October.
Cost-Cutting Measures
In response to the downturn, Seven West Media increased its planned cost reductions from $35 million to $50 million.
"The decline in advertising revenue has forced us to escalate our cost-cutting efforts," said Jeff Howard, CEO of Seven West Media.
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Author's summary: The significant fall in Australia's TV ad market has led Seven West Media to expand cost cuts amid investor frustration over stagnant dividends and share performance.