The below write up was included in the Collins Street Asset Management December 2024 Quarterly Report
''Seven West Media (ASX:SWM) Seven West Media has been trading at extremely low multiples for some time. Currently the company is trading on a PE of less than 4x. We believe SWM has been trading cheaply for two reasons: 1. a general discomfort about the advertising market, and 2. the lack of a dividend.We believe that the advertising market will improve from its current cyclical low and that SWM will position themselves for the turnaround through a group-wide restructure of operations and management. This includes a recently-announced new operating structure with three divisions — Television, Digital and Western Australia — with Digital being prioritised as the fundamental driver of future earnings.We believe the Board may consider reinstating a dividend, confirmation of which could see the share price appreciate materially.''
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