Southern Cross Austereo Media (SCA) has reported 5 percent growth in audio revenue assisted by “the one off incremental impact in April of the Federal Election”.
In a trading update, SCA said that its results are also due to its radio stations–which include the TripleM, Mix, 2DayFM and Hit brand–gaining audio share across FY25.
It described the audio advertising market as still being “short with limited visibility” and slowing down in the past two post-election months.
Today, the media company confirmed it had divested its television licences and assets operating in Tasmania, Darwin, Spencer Gulf, Broken Hill, Mt Isa and Remote, Central and Eastern Australia to Seven West Media.
Through a cost-cutting program, selling TV assets and focusing in on its core ‘All About Strategy’, it has lowered net debt from $107.5 million in FY24 to $68 million this fiscal year.
SCA CEO John Kelly said: “With the successful divestment of our regional TV assets, our entire strategic focus is now All About Audio. This clarity is already delivering results. As our share of audio revenue grows, we remain disciplined on costs and are committed to giving advertisers unmatched access to the ‘Audience That Matters’ – Australians aged 25 to 54.”
It’s been a bumpy ride for SCA in the past two years. ARN’s proposed takeover bid of SCA failed after its investment partner Anchorage Partners pulled the stumps on the move, arguing that SCA’s TV assets were underperforming.
It has been reported that the cost of the failed bid eroded SCA’s profits. The media company has doubled down on divesting its regional TV assets to Seven West Media and Network Ten in the past year.
