Seven West Media （SWM.AX） FY24 First Take： Soft result and outlook； Sept/Oct booking trends below； Buy~back not renewed； Sell

Investment Rating - Seven West Media (SWM) is rated Sell with a 12-month price target of A $0 14 [1][7] Core Views - SWM reported FY24 Sales/EBITDA/NPAT of A$ 1,415mn/A $187mn/A$ 78mn, representing declines of -5%/-33%/-47% YoY respectively [1] - Cash conversion remains weak with GOCF of A $77mn (41% of EBITDA), impacted by the ARN acquisition [1] - Net Debt to EBITDA increased to 1 6x (1 3x ex-ARN) [1] - No dividend was declared for FY24, and the share buyback program will not be renewed in FY25 due to advertising market uncertainty [1] - FY25 operating costs are expected to be between A$ 1,200-1,210mn, marginally higher than GSe estimates [1] - SWM's Sept/Oct bookings are down 4-5% YoY, with SMI TV revenues declining -8%/-12% in Sept/Oct [1] Financial Performance - FY24 total revenue was A $1,415mn, a 1% increase vs GSe estimates but a 5% decline YoY [1][5] - FY24 EBITDA was A$ 187mn, a 3% decline vs GSe estimates and a 33% decline YoY [1][5] - FY24 NPAT was A $78mn, an 8% decline vs GSe estimates and a 47% decline YoY [1][5] - FY24 EPS was 5 1¢ps, a 7% decline vs GSe estimates and a 45% decline YoY [5] Market Outlook - SWM's revenue environment is challenged, with 90% of revenues tied to the TV market, which is expected to face structural declines in audiences [6] - FY25 revenues are assumed to decline by 2% (TV + BVOD), with a flat total TV market and a 4% decline in the total FTA market [1] - The Olympics impacted July/August trading, but tougher comps are expected in Sept/Oct [1] Valuation and Forecasts - SWM's market cap is A$ 154 7mn, with an enterprise value of A $725 5mn [8] - FY25E revenue is forecasted at A$ 1,373 8mn, with EBITDA of A$182 9mn and EPS of 0 05¢ps [8] - The stock trades at a P/E of 2 8x and a P/B of 0 7x for FY24E [8]