Cost reduction efforts have paid off for Seven Group Holdings, which has managed to reap higher profits despite a fall in revenue in the first half of the financial year.
Revenue for the Kerry Stokes-owned group dropped from $2.7 billion in the previous six-month period to $1.58 billion in the six months to December 2013, a fall of 41.7 per cent.
However, net profits were up by 2.8 per cent – jumping from $256.8 million in the second half of 2012 to $263.9 million in the latest period.
Chairman Kerry Stokes described it as “a record underlying profit result in what was an undoubtedly challenging economy over the past 12 months.” Central to the media and industrial services group’s challenges was the state of the mining industry.
The results follow an increase in net profit for Seven West Media, an entity within Seven Group Holdings. The media group upped its profits by 5.5 per cent to $150.1 million, despite group revenue falling 1.1 per cent to $975.8 million.
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