Seven West predicts drop in TV revenue

Seven West Media predicts its television revenue will drop by eight per cent in the first half of the financial year, while the company's overall costs should be more than $1.2 billion for the full year.

Costs are expected to land between $1.225 billion and $1.25 billion, Seven's managing director and chief executive James Warburton said at the company's annual general meeting on Thursday.

That includes the network's NBCUniversal content deal, which was struck in late October.

Mr Warburton said the Olympics weighed on the TV revenue result, and the company would have seen a drop of two per cent had it not broadcast that event.

But he said Seven secured just over 40 per cent of the national total TV audience and would likely increase its year-on-year share in a relatively flat market.

The company previously announced a boost in revenue to $1.5 billion for the 2021/22 financial year, but saw statutory after-tax profits fall to $211 million, 34 per cent less than the previous year.

Seven recently secured the broadcast and digital rights for AFL coverage from 2025 to 2031, and is working towards a 40 per cent revenue share in the 2024 financial year, which would mean making $30 million to $40 million more than in 2022.

"Our ambition is to secure an ongoing 40 per cent share of the national total TV advertising market," Mr Warburton said.

A new channel, 7Bravo, will launch on free-to-air and 7plus in mid-January.

Chairman Kerry Stokes said 7plus has already grown to more than 13 million registered users, and content deals meant the service is well positioned for rapid growth.

He acknowledged questions from shareholders about a lack of dividends, saying they had been suspended for some time to improve Seven's balance sheet.

Board member John Alexander did not stand for re-election after more than nine years on the board.

Seven shares have declined since the open and are currently trading at about 45 cents.