Seven might be able to keep victims of its toxic workplace culture silent but there’s no keeping quiet about its rotten finances: this morning it reported a 69% fall in statutory net profit after tax to just $45 million, with underlying net profit after tax excluding significant items falling 46% to $78 million.
The discredited broadcaster, now associated more with rapists, war criminals, newsroom disasters, and sexual harassment and bullying than with journalism or family entertainment, blamed a weak economic environment for a 33% decline in EBITDA. Seven’s board cancelled its share buyback and announced — surprise surprise — that no dividend would be paid.
Seven hasn’t paid a dividend since 2017.
Seven’s television revenue declined 6%. Revenue from the company’s right-wing Perth titles The West Australian and online-only fossil fuel-funded site The Nightly was flat, for an EBITDA decline for the company’s West division of 13%. However, the company was happy with its cost-cutting and flagged to the market it would be sacking more staff: “following delivery of $25 million of cost out initiatives in 2H, we have taken decisive action to materially increase the program into FY25 to give SWM a platform to drive improved performance.” Even so, Seven admitted that advertising bookings for September and October were down 5% from 2023.
In the accompanying annual company report, company chair Kerry Stokes failed to mention the long list of scandals that have plagued the network in recent times, saying only about the company’s cost-cutting “with this exercise underway, we have had to farewell many staff and senior executives, and we thank them for their dedicated service over many years.”
In his letter to shareholders, CEO Jeff Howard only touched generally on scandals like the platforming of the rapist Lehrmann, the behaviour of Spotlight producers, the employment of war criminal Ben Roberts-Smith or the toxic culture of Seven’s workplaces revealed by 4 Corners:
Seven West Media takes very seriously any allegations in relation to sexual harassment, bullying and other behaviours deemed to be inappropriate within the workplace. We take complaints seriously, manage them confidentially and deal with any breaches decisively. We have very clear policies in place and any behaviour that is found to be in breach of these policies will not be tolerated.
But if investors feel entitled to know how much it is costing the network to protect the reputations of bullies and harassers and silence their victims, the company has other ideas entirely: there is no reference to the non-disclosure agreements that Seven has used to gag victims of sexual predators and harassers in its workplaces, or their cost to shareholders. Spotlight only receives passing mention, and there’s no mention of Lehrmann — beneficiary of large amounts of the network’s largesse — or Roberts-Smith.
Nonetheless, Howard assures shareholders:
We are committed to fostering a culture of inclusivity, collaboration and continuous learning. This year, we have launched several initiatives aimed at professional development and employee wellbeing. Our training programs, leadership development courses, and wellness initiatives are designed to support our employees’ growth and ensure they have the tools they need to succeed.
A host of former Seven staff, many deeply damaged by their treatment at the network, might beg to differ.
On news of further cost cuts, this morning the company’s share price surged 1.5 cents to 16.5 cents.
