SWM and PRT have the potential to reach more than 90% of Australia’s population each month
2021 ended on a high when Seven West Media (ASX: SWM) completed the acquisition of all the businesses and related assets of Prime Media Group Limited (ASX: PRT).
The combination of SWM and PRT will deliver significant value creation by:
• Providing advertisers with a single platform that will deliver superior audience reach across metropolitan and regional markets
• Unlocking the premium and integrated revenue potential of the combined metropolitan and regional audience base across broadcast and digital platforms
• Enhancing the audience proposition through re-investment in content and expanding the digital delivery of SWM’s offering in regional markets
• Generating estimated cost synergies of $5 million to $10 million on an annualised basis. The costs savings are expected to be fully realised within 12 to 18 months from completion of the acquisition. Revenue upside is also expected but has not been quantified
The merger of SWM and PRT is a real game changer for both businesses and for the Australian media sector. We now have the potential to reach more than 90% of Australia’s population each month as one integrated company and to give advertisers and agencies easy and seamless access to metro and regional markets.James Warburton, SWM Managing Director and Chief Executive Officer
Prime is a great business and is the #1 TV network in regional Australia by a big margin. In the metro markets, Seven has been #1 for 13 of the past 15 years, including this year, while 7plus is the #1 commercial BVOD service nationally.