The Reserve Bank of Australia noted in minutes of its August meeting released on Tuesday that economic growth for Australia for calendar 2022 was revised downwards and inflation was revised upwards, with the economy recovering in the first half of the year. made of. And the job market was tight.
Based on the minutes, Capital Economics suggested that September would bring another half a percentage point hike in interest rates.
The RBA is taking a tough step, doing everything it can to calm domestic demand and inflation while making sure it doesn’t go too far and push Australia into zero economic growth or recession.
Seven CEO James Warburton downplayed the recent decline in television advertising revenue, which has fallen to record highs linked to the general election and the Olympics, and reportedly said the group could see a strong ad booking cycle in the coming months. was.
However, Seven’s forecast report said the overall TV advertising market fell an estimated 2 percent in the first quarter of the current fiscal year, but down 7 percent including the Olympics. However, the outlook for inclusion in the second quarter of fiscal 2023 is positive year-on-year.
The rate of recovery that Seven has experienced over the past two years has been impressive, but volatile.
In 2020, Seven was in desperate need of a financial revitalization. This changed a story from the days when there were question marks over whether Stokes would be asked to provide equity injections.
The company now wants to fund a 10 percent share buyback.
The company’s share price has shown that its earnings and balance sheet are enjoying a renaissance – its shares have risen from 12 cents to 50 cents in the last two years.
Seven said TV earnings (before interest, taxes, depreciation and amortization) in 2022 were the best in 11 years.
Although the company is now on a more financial footing, its share price will continue to reflect macroeconomic conditions that do not favor media companies in the short term.
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