SEV is a well managed media company that holds a number of...

SEV is a well managed media company that holds a number of investment assets, including a leading TV network, magazine businesses and Yahoo!7 JV, that brings together Yahoo!'s successful Internet business model and SEV's online assets. It also holds a shareholding in WAN, ENG and other non-core assets. After the SMG transaction it will have a $3.2B cash-box with which to spend on new investments.

Investment View (over the next 12 months) - In the near-term, SEV has repositioned itself as an investment vehicle, while maintaining a 50% stake in the new media group. The SMG assets are all performing strongly. The TV programming platform is now established and we believe the high margins achieved in FY06 are defendable in FY07. Magazines are forecast to provide modest growth, while Yahoo!7 should continue to enjoy strong traction as more traditional content is shifted online.