In 2011, KS acquired Seven holdings. Group revenue immediately shot up to over $1B with the added TV income streams. Since then however, there has been an almost linear downward sales revenue trajectory, despite the 'Digital transformation', addition of more ancillary DTV channels and significant population/CPI growth.
Group sales revenue is falling yoy, input costs are rising and there is a significant amount of debt. No matter how you spin it, this is not, and is very unlikely to ever turn into, a growth story.
To me, the SWM story is very much like that of Honda, Mitsubishi and Nissan. Individually, there is no way any of these Japanese companies can survive a fight with Chinese automakers. However, if they merge with their arch-enemies, maybe they can fight on for a little longer.. In a world of online content, little Aussie media companies will inevitably need to do the same.
SWM Price at posting:
15.0¢ Sentiment: None Disclosure: Not Held
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