Redundancies come as the Kerry Stokes-controlled media company braces for the end of a lucrative commercial deal with Facebook and Instagram’s owner Meta.
The Kerry Stokes-controlled Seven West Media will make up to 150 jobs redundant as it grapples with a weak advertising market and braces for the end of a lucrative commercial deal with Meta.
Howard, now elevated to chief executive officer, will on Tuesday inform staff of the company-wide cuts, according to a source with direct knowledge of the decision not authorised to speak publicly.Seven West owns the Seven Network and the Perth-based newspaperLast week, Howard told a parliamentary inquiry into social media that the network would need to find cost efficiencies should the revenue from its commercial arrangement with Meta dries up this year.
Seven West’s commercial deal with Facebook and Instagram’s owner Meta, estimated at $15 million annually, will expire at the end of this week. It will be impacted more severely by the end of the deal compared to its peers, Nine and News Corp, according to a recent note from E&P Capital analyst Entcho Raykovski.In the note, Raykovski estimates Seven’s EBITDA to suffer an 8 per cent hit.
Morningstar analyst Brian Han, in an update on Seven released last week, noted that the structural challenges facing the free-to-air television and broadcast video-on-demand industries are likely to prevent any lasting improvement in Seven West’s margins.Those challenges, he said, are fuelled by the increased competition for viewers and advertising dollars.
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