Trailblazer Seven West Media cements ‘quality, credibility’ status after finalising Google, Facebook deals

Seven West Media has finalised its agreement with tech giant Google, hailing the five-year deal as confirming the “quality” and “credibility” of its newspaper and television brands.

The Australian-listed company also revealed today it had signed a long-form, three-year agreement with Facebook, which was awaiting a signature from the social media platform overnight.

James Warburton, chief executive of SWM, said completion of both agreements confirmed the strong recognition of the quality and credibility of SWM’s leading television and newspaper news brands and entertainment content.

“Together, they underpin our sustainability and enable us to continue to build our digital platform,” he said.

SWM, publisher of The West Australian, said it anticipated the digital revenue associated with the agreements would commence before the end of fiscal 2021, with the majority to be derived in fiscal 2022.

“The transformation of SWM continues,” Mr Warburton said.

“Finalisation of the Google and Facebook agreements completes one of the key objectives outlined in our February results, delivering further digital transformation, and realising the true value of our news and current affairs product on third-party digital platforms.”

Mr Warburton said the Google and Facebook partnerships were made possible because of the new Media Bargaining Code.

“This has been an important reform led by Prime Minister Scott Morrison, the chair of the Australian Competition and Consumer Commission, Rod Sims, Treasurer Josh Frydenberg and Communications Minister Paul Fletcher,” he said.

The company also provided the market with a trading update today, outlining that its third-quarter advertising revenue grew at the upper end of the 7 to 10 per cent range it provided at the first-half results briefing in February.

Net debt is forecast to be about $270 million to $280m by the end of fiscal 2021. Net proceeds of $45m from the Airtasker IPO in March were used to retire debt, bringing total debt retirement to $195m in the second half to date.

“Our balance sheet is now in a much stronger position and our fiscal 2021 fourth quarter content is positioned to deliver audience and share growth, particularly among people 25 to 54 and on 7plus,” Mr Warburton said.