James Warburton, the new chief executive of Seven West Media, has said he will seek mergers and acquisitions while continuing to slash costs, as the company reported a loss of almost $445m for the past financial year. Warburton, who took over five days ago after the sudden exit of Tim Worner, described some of the network's television shows as “tired” and said the company was “skewing too old” in certain areas.
The media group wrote down $574m from the carrying value of its television licences, Pacific magazine group and the West Australian newspaper, dragging it from a profit of $134m a year earlier. Warburton refused to rule out going back to shareholders for a cash injection or a merger with News Corp, saying “all options were on the table”. He also said the company would act as a “hunter” for mergers and acquisitions and was keen on a partnership with a video-on-demand provider.
Tim Worner, the former chief executive, received a total pay package of $3.15m, up from $2.89m the previous year, despite the company's poor performance. He may also receive a termination payment of $2.5m in lieu of 12 months' notice. However, he missed out on a bonus worth about $179,000 and around $900,000 in stock options lapsed due to Seven's collapsing share price.
Seven's chairman, Kerry Stokes, who owns 40% of the company, did not take part in the Q&A session with reporters and analysts. Warburton's own remuneration is substantially lower: $1.35m in cash per year, plus a bonus of up to $2m and shares worth up to $4.05m over four years.
The company owes $650m to banks, with $400m due in November 2021. Warburton said Seven “cannot cost-cut our way to success” even as he pledged to continue the austerity drive that saved $38m last year. The annual report also revealed that former Victorian premier Jeff Kennett was paid $365,000 a year, including $220,000 for providing political commentary on air.
