Seven West Media intends to make further cost cuts after an advertising downturn.
Seven has reportedly identified $15 million to $20 million in “new temporary additional cost savings” that will primarily hit content.
It’s unclear what programming will be affected.
These cuts are in addition to $20 million reported in the company’s semiannual results in February.
Seven told a Macquarie Australia conference on Tuesday that the advertising market is expected to decline by about 11% in the second half of the fiscal year, but noted that the TV market has a history of strong recovery.
“The decline and recovery of the TV market has historically led to higher revenues within two years,” CEO James Warburton and chief digital officer Gereurd Roberts told the conference.
Lack of spending by key political advertisers, including Clive Palmer, and government spending to support COVID-19 vaccinations and social distancing restrictions also impacted year-over-year revenue.