15 Cent SWM share price = 3 times current earnings - Momentum is beginning!, page-227

Seven West Media (SWM) has significantly failed its shareholders under Kerry Stokes’ leadership over the past 10 to 20 years. This conclusion is based on key shareholder metrics such as return on investment, dividend history, and strategic positioning in a rapidly changing media landscape.

SWM’s share price has dramatically underperformed over the last two decades. Once regarded as a dominant player in the Australian media sector, the company has shrunk into a low-value, small-cap stock with limited investor interest. It has not paid a dividend in over six years, which is a serious concern for long-term shareholders, especially in a sector traditionally known for reliable cash flows. In addition, the company has diluted shareholder value by issuing new shares to raise capital, often without producing the growth required to justify that dilution.

The company has been slow to adapt to digital disruption. While competitors like Nine have embraced mergers and digital platforms, SWM has lagged in transforming its legacy print and television operations into a robust digital business. Its digital initiatives, such as 7plus, have failed to deliver strong monetization compared to local or global peers. Instead of innovation-led growth, SWM has leaned heavily on cost-cutting — particularly in newsrooms — which has weakened its product and, arguably, its public trust.

Kerry Stokes' long-standing control over SWM has raised concerns about board renewal and governance standards. Critics argue that the board has lacked independence and that decisions have sometimes favored personal or legacy interests over shareholder value. The company has also made poor capital allocation decisions. Acquisitions such as West Australian Newspapers (WAN) and other regional media assets have not delivered adequate returns and have added complexity and cost to the business. There have also been recurring industry concerns about the appearance of cronyism in board and executive appointments.

In total, it is hard to view SWM as anything other than a long-term failure for shareholders under Kerry Stokes' leadership. The company has delivered poor capital growth, no dividends, and little strategic vision in adapting to a changing industry. While media companies everywhere have faced disruption, SWM’s particular lack of innovation and underwhelming performance relative to peers make the critique of its leadership — and its failure to deliver for investors — difficult to dispute.