Seven West Media Ltd., the Australian broadcaster of ‘Home and Away,’ suspended its dividend for the first time since listing in 1992 and is targeting deeper cost cuts as it struggles to stem revenue declines.
Sales at the media company backed by billionaire Kerry Stokes slid 10 percent in the half year ended Dec. 30, 2017 to A$809.4 million ($640 million), it said in a statement.
Like other free-to-air broadcasters, Seven is facing competition from streaming companies such as Netflix Inc. as well as advertising platforms including Facebook and Google. Seven’s revenue in the period plumbed a seven-year low, according to Bloomberg
“Considering industry structural headwinds and the difficulty growing earnings, they’ve decided to be prudent,” said Daniel Mueller, a Sydney-based portfolio manager at Vertium Asset Management Pty.