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Category: Business, Economics and Finance

Seven West CEO acknowledges affair while unveiling 91pc profit dive

Wednesday, 15 Feb 2017 09:24:30 | Graeme Powell

Tim Worner kept the backing of the Seven West board in the wake of the affair. (AAP: David Moir)

Broadcasting and publishing group Seven West Media has reported a massive slump in its half-year profit.

In the six months to the end of December, the company's profit fell 91 per cent to $12.4 million.

Seven West Media chief executive Tim Worner acknowledged his affair with former employee Amber Harrison during a presentation on the result.

"Over the past two months much has been written and discussed concerning the ongoing claim of a former employee," he said.

"I have apologised for what did happen and we don't wish to give any more oxygen to things that did not happen."

Ms Harrison launched a high-profile social media campaign against Seven West Media, releasing documents and details about her affair with Mr Worner, including claims he snorted cocaine during one of their encounters.

The scandal has damaged Seven West's reputation, prompting the company to seek a court injunction to stop Ms Harrison from leaking documents.

Seven West Media shares slumped more than 6 per cent to 73 cents following the profit result.

Kennett defends decision to retain Worner

Seven West Media board member and former Victorian Premier Jeff Kennett, who has been involved in a bitter stoush with Ms Harrison on social media, has rejected claims the company is trying to destroy her with its legal muscle.

"We have spent a considerable amount of time as a board, we have authorised an independent inquiry at great cost to our shareholders, and that found Ms Harrison's claims were not substantiated," he said.

He also accused Ms Harrison of releasing documents that she had no right to release.

"It was commercial documentation that was Seven's property and I was concerned as was the board Ms Harrison was in possession of substantial other documentation, that had nothing to do with this issue, but was commercially sensitive," he said.

"This started as an affair between two people that should not have occurred.

"We have bent over backwards to address her issues, we have financially compensated her to the extent of approximately $330,000."

Mr Kennett defended the decision not to sack Mr Worner over the affair.

"He [Mr Worner] was called in, admonished, he was financially penalised, he might have been, under different circumstances, someone might have said alright this is totally inappropriate and therefore you are going, but that is not what the Seven West Media board did at the time."

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