Seven West Media withdraws guidance as sports revenue dissipates
24 March 2020,
The suspension of the AFL season and the potential postponement of the 2020 Tokyo Olympic Games is expected to cut into Seven West Media's (ASX: SWM) revenue for FY20.
As such, the company has withdrawn earnings guidance for the financial year."Such postponements are likely to result in rights payments by SWM being pushed back to reflect the revised scheduling; any adjustments remain subject to negotiation," says SWM.
"Likewise, local productions are also facing challenges with COVID-19 issues, and our teams are working tirelessly to deliver on commitments."
SWM says it has implemented business continuity plans over the last two weeks including establishing remote working for the majority of staff.
Southern Cross Austero parent Southern Cross Media (ASX: SCA) has gone into a trading halt this morning.
The company says a suspension from trade is necessary to enable SCA to assess the impacts of Covid-19 on its business.
Updated 9.35am AEDT on 24 March 2020.