Seven West Media has launched a $75 million share buyback just days after its market value hit a record low.
The owner of the Seven Network and The West Australian newspaper, which made a $1.9 billion loss in the 2014/15 financial year, said it hopes investors see the buyback as a strong statement of confidence in the company from the board.
"We have seen volatile trading in Seven West Media shares and we are of the view that this company is extremely well placed to build on its leadership," chief executive Tim Worner said.
"The on-market buyback at attractive levels will create value for the remaining shareholders."
Seven West shares hit a record low of 66.5 cents on September 10, down 18 per cent since the company reported its massive annual loss on August 19.
The shares have fallen 73 per cent in the last two years.
News of the buyback, which will be conducted over the next 12 months, sent Seven West shares higher on Tuesday, adding 4.5 cents, or 6.5 per cent, to 74 cents.
At current prices, the $75 million buyback represents about seven per cent of Seven West Media's shares.
Mr Worner said the company will still have the flexibility to continue to invest in establishing new revenue streams, using the promotional power of its existing media businesses.
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