Seven Studios, which is led by Therese Hegarty, creates programs includinga co-production with Netflix. The studios business also includes Seven Studios UK and 7Beyond in the US, and recently signed a deal with Amazon for a reboot ofThe unit's revenue from program sales and third-party productions rose by 19.6 per cent to $53.2 million in the December half, financial disclosures show.
Seven has been battling a tough advertising market and weak ratings. Shares in the company, which is controlled by billionaire Kerry Stokes, sank 21 per cent to close at a record low of 21¢ on Tuesday. JPMorgan media analyst Eric Pan said the potential sale of Seven Studios could be a smart move for the company.
"It is interesting they actually broke out expenses for Seven Studios for the first time. That could be a first step to potentially attract suitors, because it looks like a 39 per cent margin business. That is one potential asset they can divest."Seven has also been looking to outsource more of its programming to external houses such as Endemol Shine. On Tuesday it said it would look to take a further $20 million in costs.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: smh - 🏆 6. / 80 Read more »
Source: smh - 🏆 6. / 80 Read more »