Media giant announces $50m earnings downgrade

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Seven West Media (ASX: SWM) released a major profit downgrade late on Tuesday.

The Perth-based media giant announced its full-year earnings before interest and tax (EBIT) was likely to be about $50 million less than expectations.

Trading for the first time since the announcement, Seven West Media shares were down 16.18% to $3.16 in the first 30 minutes.

The company said the downgrade was due to weak advertising market conditions.

It expects its EBIT to be in the range of $460 to $470 million, down from a previously predicted $515 million.

“The group remains committed to costs below CPI except for the continuing investment in programing in the television division,” the company said.