Shares in Seven West Media plunged more than 11 per cent in early trade after the free-to-air television broadcaster reported a 13.8 per cent drop in net profit on falling ad revenue.
While the network's switch from tennis to cricket appears to have paid ratings dividends, net profit came in at $86.2 million for the six months ended December 30, down from $100 million a year ago.
Seven West said total half-year revenue had fallen 1.5 per cent with advertising, which accounts for the majority of sales, down 3.2 per cent to $595.2 million during the period.
Half-yearly printing and digital advertising revenue slumped 11.6 per cent.
Chief executive Tim Worner said obtaining the cricket broadcasting rights had helped the network score a 40 per cent viewing share on a record 39 days over the summer.
"We promised to improve our ratings and revenue share this half as we focused on the core and we have delivered, despite a softer second quarter advertising market," he said on Tuesday.
But shareholders appeared unimpressed, with Seven West shares trading at 51.75 cents at 1300, down 8.41 per cent, having dipped as low as 50 cents earlier.
Like other broadcasters and newspapers around the world, Australia's traditional media companies are fighting an uphill battle to cut costs, diversify revenue sources and increase content offerings as advertisers increasingly flock to online giants for exposure.
Seven West, which has aggressively maneuvered to reduce debt through a string of measures, including freezing dividends last year, increased its FY19 cost reduction target to $20 million to $40 million from $20 million to $30 million
The company did not declare a dividend and said that dividend payments remained suspended.
SEVEN WEST BOOKS INTERIM PROFIT HIT
* Net profit down 13.8pct to $86.2m
* Revenue down 1.5pct, including 3.2pct ad revenue slump to $595.2m
* No interim dividend declared
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