Southern Cross Austereo (SCA) has announced net profit growth of 19 per cent to $77.2 million for the 2016 fiscal year, and is banking on its new TV deal with Nine Entertainment Co. to deliver “considerable growth” over the next 12 months.
In a statement to shareholders, the radio group revealed that its total revenue was up 5.1 per cent to $642.3 million over the 12 months to 30 June, while SCA reduced its net debt by a massive 32.9 per cent to $340.2 million.
The group’s earnings before interest, taxes, depreciation and amortisation grew 2.8 per cent over the period to 167.7 million.
SCA chief executive Grant Blackley said the results reflect the operational and financial reset of the group.
“SCA’s radio and television businesses are consistently outperforming the market, with improved audience share, consistent reinvestment in our content and marketing, and a continuous focus on stronger monetisation of our assets,” he said.
“Our new television affiliation with Nine Entertainment Co. will deliver considerable growth in FY17 following a seamless transition on 1 July 2016.
“As evidenced by new partnerships with Vevo and Australian Traffic Network, FY17 will see Southern Cross Austereo further improve its depth as one of Australia’s most diverse media companies with a broad range of media assets.”
SCA’s strong full-year results come after the group retained top spot in commercial radio for metro audience reach in GfK’s Survey 5, with one of the highlights being 2Day FM’s Rove & Sam breakfast show growing its audience size for the sixth consecutive survey, according to SCA chief creative officer Guy Dobson.