The company’s statutory loss after tax compares with a profit of $83.4 million in the prior period, with significant pre-tax items that included $106.4 million in impairments and $51.8 million in onerous contracts related to legacy deals for US content and for the Tokyo Olympics.

First-half revenue was down 3.2 per cent at $772.4 million as the Australian TV advertising market dropped 8.5 per cent during the half.

At 11:19 AEDT, Seven West Media shares were down 13.5 per cent to 22.5c cents, down 31.8 per cent from the start of the year.

“Seven West Media’s strategy to transform the group into an agile, content-led organisation continues at pace, but in the face of a difficult operating environment with challenging advertising market conditions,” the company said.

Chief executive James Warburton said the company’s Seven Network was number one by television revenue share, increasing its slice of the pie by 0.4 per cent to 38.8 per cent in the first half.

Warburton acknowledged the 7.30pm Sunday to Thursday slot had been a continued weakness for Seven, although he said it presented the network with the opportunity for growth if it found a hit.

It had new programming coming and the Tokyo Games beginning in late July should be the “biggest Olympics ever” and would drive viewership for Seven, Warburton said.

The network had signed 10 advertising sponsors for the Olympics and was close to signing another two, with revenue from those deals already bringing in $90 million.

Warburton said 7News.com.au had been a “stunning success” and was Australia’s No.4 news website only 10 months after its launch.

He said The West’s paywall was tracking ahead of expectations.

Mr Warburton said the company was working on the divestment of Redwave and proposed $45 million sale of Pacific Magazines, which is being reviewed by the ACCC.

Seven is trying to reduce its $541.5 million in debt and is undertaking a strategic review of Seven Studios after receiving inquiries about a sale, Warburton said.

Australia’s largest production company, Seven Studios produced 50 programs and series in 2019, including the first major Australian commission from Amazon, and during the first half it brought in $24.7 million in earnings on $53.2 million of revenue.

Seven West forecasts full-year underlying earnings before interest and tax to come in between $165 million and $175 million subject to market conditions and improved ratings.

Seven West’s will again not pay an interim dividend.

SEVEN WEST’S CHALLENGING HALF

* Revenue for the six months to December 31 down 3.2 pct to $772.4 million compared with the same period in 2018

* A statutory loss of $64.4 million, compared to a $116.8 million profit a year ago

* No dividend.

– AAP