Why SWM is worth more than $1.50 per share, page-199

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Here are just some of the valuable parts of the SWM business

• 19.9% stake in listed radio group ARN Media (https://hotcopper.com.au/threads/ann-swm-acquires-strategic-equity-interest-in-arn.7693990/?post_id=70859467).

• Seven West Studios (the production and distribution business of shows like Home and Away, Better Homes and Gardens, My Kitchen Rules valued by UBS Analyst Eric Choi at circa $400m https://www.copyright link/companies/media-and-marketing/asset-sell-off-could-ease-seven-west-s-debt-burden-ubs-20200219-p5427sPlease note that this $400m valuation does not include the tax benefits from the recent producer offset tax change which generates SWM $10m+ of after tax earnings per annum from 1st July 2024 and arguably increases the value of this asset to >$450m.

• TX Australia (the digital transmission asset jointly owned 50% by Seven West Media and 50% by Nine Entertainment https://www.txaustralia.com.au/about-us) which received sale bids of circa $200m in 2020 but was not sold disallowed/business/companies/sale-of-nine-seven-joint-venture-on-hold-until-new-year-20201212-p56mxi.html

• $30m+ per year of Annuity style News Media Bargaining Code Income from Google(Alphabet) which incurs nearly no additional expenses. (‘minimal incremental costs required to deliver the revenue’ paragraph 5, 3 May 2021 ASX Announcement Seven West Media) . I have for the sake of pessimistic estimation placed no value on the Facebook (Meta) income despite the fact that they will likely be ‘designated’ and thus forced to negotiate under the News Media Bargaining Code. https://www.copyright link/companies/media-and-marketing/google-strikes-news-showcase-deal-with-seven-20210215-p572jc

• Seven West Ventures investment Portfolio which includes stakes in businesses such as Healthengine,View Media Group, MoneyMe (asx:MME), Raiz (asx:RZI), Open Insurance, Mad Paws (asx:MPA), Carbar etc (valued at $100m as of FY23 year end + $5.25m strategic investment in asx:MPA which occurred on 16 February 2024 = $105.25m current valuation, last paragraph page 2, ASX Seven West Media FY23 Full Year Results Release) , https://hotcopper.com.au/threads/ann-mpa-secures-5-25m-strategic-investment-from-seven-west-med.7853080/ )

• Prime Media Group (acquired by Seven West Media for $131.88m in December 2021 https://sevenwestmedia.com.au/assets/pdfs/Acquisition-of-Prime-Media.pdf) which was making upwards of $25m EBITDA before an additional $16.3+ million in EBITDA was realised through cost and revenue synergies delivered since the business was acquired.

• West Australian Newspapers (ownership of multiple regional WA newspapers, the Nightly.com.au and the dominant WA paper The West Australian. FY23 EBIT earnings of $29m. No earnings have been included from the new startup thenightly.com.au however it has already secured major advertising partners to cover expenses for the year ahead. https://www.copyright link/companies/media-and-marketing/the-three-billionaires-backing-kerry-stokes-new-free-newspaper-20240220-p5f6gu

• Digital Growth Assets including the 7plus BVOD streaming service , 7news.com.au , thewest.com.au and perthnow.com.au news websites, FY23 EBIT $134m

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