Seven shares surge on earnings forecast
Seven executives have forecast full-year earnings that exceed analysts' estimates and say the momentum will continue with its Olympics and Ashes coverage.
Shares surged by more than 13 per cent after the broadcaster said fourth-quarter sales revenue was up by 45 per cent on the COVID-ravaged previous equivalent period.
Full-year earnings before interest, tax, depreciation and amortisation are forecast to be between $250 million and $255 million.
The company claimed analysts' expectations ranged between $235 million and $245 million.
Seven West Media chief financial officer Jeff Howard said a lift in audience share was expected at the start of next financial year due to the Tokyo Olympics and Ashes cricket coverage.
He said costs in the TV business would be reduced by moving the Sydney studios from Martin Place to Eveleigh. This is an 18-month project.
In TV ratings, Seven claimed it was on track to win a 13th week of 25 this calendar year, based on total viewers.
Shares were higher by 13.13 per cent to 45 cents at 1145 AEST.
