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2016 Annual Report

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2016 Annual Report Running head Delivering world class media content Annual Report 2016 Delivering world class media content 1 Running head Contents Leadership Contents We create great content and deliver audiences 2 Our Brands 4 Our Strategy 6 Our Strategic Framework 8 Our Performance Dashboard 10 Letter from the Chairman 12 Letter from the Managing Director & CEO 14 Creating our future 16 Performance of the Business 18 Group Performance 20 Seven 26 The West 32 Pacific 36 Other Business & New Ventures 40 Connecting anywhere, anytime 42 Strategic Development 44 Risk, Environment, People and Social Responsibility 45 Board of Directors 50 Corporate Governance Statement 53 Directors’ Report 64 Remuneration Report 68 Auditor’s Independence Declaration 83 Financial Statements 84 Directors’ Declaration 134 Independent Auditor’s Report 135 Company Information 137 Investor Information 138 Shareholder Information 139 2 Seven West Media Limited Annual Report 2016 ABN 91 053 480 845 Running head X Factor host Jason Dundas and judges Adam Lambert, Iggy Azalea and Guy Sebastian Delivering world class media content 1 Running head We create great Headingcontent 1 and that is the foundation of leadership We are now in our tenth consecutive year of leadership in broadcast television. Our success is built on great ideas and the content we create. This leadership will define our future across every communications platform. Seven Pacific 14.6 24.2 million million national average audience weekly audience reach touch points The West Yahoo7 1.7 207 million million consumers across print total streams and online every month during FY2016 2 Seven West Media Limited Annual Report 2016 ABN 91 053 480 845 Running head MKR judges: Manu Feildel, Pete Evans Delivering world class media content 3 Our Brands We have the best-performing brands We are a content company of two new international production expanding its presence in media, driving companies: 7Wonder and 7Beyond. its leadership in the creation of content Content is our beating heart. Our These two new businesses underline and delivering that content anywhere, leadership is driven by our content and a key part of our strategy for today anytime to the biggest audiences. The our engagement with our audiences. and in the future: the expansion of our company is expanding its presence leadership in the production of content. in the further delivery of its video and We are Australia’s leading multiple publishing content beyond its digital platform media company. We have a The delivery of content through powerful broadcast channels and across an market-leading presence in broadcast storytelling is our competitive advantage. array of platforms, specifically Plus7. television, magazine and newspaper It is key to our long term success. Seven has also secured a presence in publishing and online. And in a subscription video on demand through We continue to invest in new and competitive and changing market, we its Presto joint venture with Foxtel. are well placed to deliver leadership innovative ways to better know and through the content we create across grow our audiences. We are developing Importantly, we see our strengths in multiple digital platforms and devices. and using new business models and production as a major part of our future. leveraging our strong partnerships to 7Productions is the largest producer We are the home of many of Australia’s generate data insights, content that of content in Australia. This year best performing media businesses resonates and integrated client focused 7Productions created, commissioned – Seven, 7TWO, 7mate and 7flix, advertising and e-commerce solutions. and produced over 670 hours of content Pacific Magazines, West Australian and is recognised as a leader in the We reach audiences everywhere. Newspapers and Yahoo7, and the production of scripted, entertainment, Our objective is to dramatically expand biggest content brands including My reality, observational documentaries and the value of our content everywhere. Kitchen Rules, The X Factor, Home and children’s programming. We continue Away, Sunrise, the Australian Football to expand our production, via Seven League, the Olympic Games, Better Our media businesses West Media’s existing partnerships in Homes and Gardens, marie claire, 7Beyond, and 7Wonder, which continue New Idea, Who, The West Australian, Television to provide innovative new local and Presto, and Plus7. international commissions. Seven is Australia’s most-watched Seven is now creating more content broadcast television platform. Seven We have developed significant long- than at any time in its history and is continues to lead in primetime, building term partnerships with the Australian expanding its presence in international on its market-leading performance Football League and the International content production with the formation over the past ten years. The network is Olympic Committee. We have also 4 Seven West Media Limited Annual Report 2016 ABN 91 053 480 845 Our Brands We are Australia’s leading multiple platform media company. We have a market-leading presence in broadcast television, magazine and newspaper publishing and online. secured the Rugby League World Cup as 7Live and Plus7 streaming. This Yahoo7 remains one of Australia’s to be played in Australia, New Zealand multi-platform approach will deepen most popular online destinations and and Papua New Guinea in 2017 and the our content offering to consumers provides a key window to monetise Commonwealth Games on the Gold and allow for e-commerce, brand content created in the TV and Coast in 2018. These agreements extensions and a more complete publishing businesses. AVOD provides confirm our objective: to deliver the media and entertainment experience. our audiences with greater access biggest events to the biggest audiences to our content and digital exclusives, and drive our leadership across Publishing and our clients with a highly targeted broadcast television and the delivery of environment to get their marketing our content across connected devices. Our core objective is to lead in the messages across to consumers. As new forms of content delivery creation and dissemination of content fragment the market, television will relevant to Australians. This is key to our Content is the lifeblood of our business remain the centre of mass audience ongoing development of our publishing and it is content that will “future proof” reach. We believe reaching mass business and brands. Newspapers and our business. That is why we continue audience will be highly sought after magazines are relevant today and into to invest in content and why we strive in a fragmenting world. the future. Our titles are out-performing to make Seven West Media the home their peers in readership and circulation, of the most creative people and ideas. Recognising fragmentation of we are building share through new Our content is king and our delivery audiences and changes in viewing online platforms, and we are being platforms and integrated sales consumption, we have extended reactive to the changing landscape. solutions are the king makers. our content onto new platforms with Our magazine brands continue to new delivery models. Our content Other Business & New Ventures windowing strategy now extends transition beyond print into social beyond the linear television experience media, digital video, e-commerce It has been a significant past twelve to advertising video on demand, and live events. Examples of this strategy months as the company expands its subscription and social platforms. were the launch of BEAUTY/crew, presence in new businesses beyond Styled by marie claire, foodiful.com.au, its core strengths in media. Three years We have the content, the platforms, the pepperleaf.com, allrecipes.com.au ago we embarked on a strategy to client partnerships, and capabilities to and myweddings.com. invest in early stage businesses where leverage new technology, and we will we believe we can use the power of use the power and marketing muscle The West Australian and Channel our assets to help them grow. We have of our media assets to promote our Seven Perth newsroom is an engine targeted key adjacent verticals across presence on new platforms such for video content production. Our Health, Wealth, Home and Lifestyle. The news team’s digital offering is growing majority of businesses are consumer and its unique local voice and point of facing, given this is where we can add difference is being leveraged across material strategic value. We now have a innovative new platforms such as The number of exciting businesses that we Game (AFL Fantasy), the first of many believe will provide a platform for future designed to engage our readers and growth. Our portfolio of companies advertisers across key verticals such now includes Airtasker (local trades as Health, Wealth and Travel. and services marketplace), SocietyOne (peer-to-peer lending), HealthEngine Digital (health service marketplace), Newzulu (UGC content management), Nabo We are growing, integrating and (social network), Starts at 60 (online investing in digital. This year, Seven community for a 60+ audience) and started live streaming via 7Live and MediaBeach (News Exchange Platform). Plus7. With the launch of 24/7 online We continue to assess and look for streaming, we have fundamentally new compelling early stage businesses changed the way we monetise and grow to drive long term shareholder value our audience with Yahoo7, the home of for Seven West Media. Plus7, our market-leading
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