SCA Issues $3m Shares To Pay Talent

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After its annus horribilis, Southern Cross Austereo has succeeded in luring Hamish Blake and Andy Lee to the national drive-time slot they once dominated. And it is issuing more than $3 million shares in the process, as part of a broader programming shake-up that will see its underperforming Sydney breakfast team replaced by Dan Debuf and Maz Compton.

This story was originally published by The Sydney Morning Herald

The Sydney Morning Herald's Madeleine Heffernan reports that Hamish & Andy's return to the Today Network drive slot has seen shares in SCA rise by 11.66%.

Southern Cross executive director of metropolitan operations Guy Dobson said Hamish & Andy would “be a great catapult for the rest of 2Day FM” when they returned in mid-2015. While the drive slot does not necessarily lift ratings in other slots, he said Hamish & Andy would.

Shareholders were pleased, pushing up Southern Cross shares 11.66% to 91¢. Directors Leon Pasternak and Max Moore-Wilton, and major shareholders Macquarie and Allan Gray, have each topped up their Southern Cross shares in the past week or so.

But after a tough year of poor TV ratings and patchy radio ratings, the company’s shares still remain down 46 per cent through 2014.

Read the full story here.