TV and newspaper group Seven West Media says it is not changing its profit forecast, despite a downgrade by its rival Nine Entertainment.
The owner of the Seven Network and the West Australian newspaper says it still expects to achieve an underlying net profit of between $205 million and $215 million in the year to the end of June, as it forecast at the end of April.
The statement comes after Nine Entertainment cut its earnings forecast and said advertising revenues are shrinking, causing shares in several media companies to plunge.
Seven West said Seven's ratings have been strong, delivering the largest gap to its closest competitor, Nine, since 2011.
"The demand for key franchise programming is stronger than in the prior year and the market response to our Olympic sponsorship packages has been very positive," it said on Tuesday.
Seven West shares were down 12 cents, or 10.1 per cent, at $1.065 at 1513 AEST, after earlier hitting a low of $1.02.
Nine shares were 32.75 cents, or 16.5 per cent, weaker at $1.6575.
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