Strong growth in digital revenue could not save Seven West Media from a modest decrease in half-yearly earnings amid turbulent economic conditions.
The media conglomerate, which owns the Seven Network and The West Australian newspaper, reported on Tuesday a 4.1 per cent decline in net profit to $123 million in the six months to December 31.
Total revenue for the half was $815m, down 0.5 per cent from the previous corresponding period, while earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 4.8 per cent.
Chief executive James Warburton lauded Seven's performance despite economic headwinds and unfavourable comparisons to the previous year's one-off Olympics boost.
He said strong content helped maintain the company's dominant market share, bolstered by the addition of AFL, cricket and NBCUniversal digital content rights.
"The content foundations are set. We are in a strong financial position and we are capitalising on the digital transformation of Seven West Media," Mr Warburton said in a statement.
"We are confident we are well positioned for the future."
Growth was led by Seven's digital platforms, which grew 3.9 per cent to $101m in revenue even as the total TV market declined 4.5 per cent.
The company's news arm, West Australian Newspapers, grew digital audiences 16 per cent year-on-year but suffered a 10.8 per cent decline in EBITDA due to increases in paper costs.
Mr Warburton praised the company's cost discipline, with expenses only growing one per cent to $610m in the face of rising inflation.
Despite this, Seven West declined to pay out a dividend for the 11th reporting period in a row, citing "prevailing market conditions".
The company has not delivered a dividend since 2018, when payments were suspended to help pay down $589 million in debt.
Seven West paid off $70m in debt for the quarter, leaving total net debt down to $186m.
The company forecast its TV market would decline in the second half of the financial year but expects a double-digit growth in video on demand.
Seven West's share price slumped four per cent to 43c in the morning's trade.
