Net Profit Up 60% For Southern Cross Austereo On The Back Of Leaner Operating Model

Net Profit Up 60% For Southern Cross Austereo On The Back Of Leaner Operating Model

Southern Cross Austereo’s leaner operating model is paying off, with net profit after tax up 59.3 per cent to $32.5M for H1 FY2021.

With a leaner operating model that was introduced last year, SCA managed to lower expenses from $240.6M in H1 2020, to $183.9M this year.

This 23.6 per cent drop in expenses has allowed the company to make meaningful changes to how it operates coming out of the COVID-19 pandemic, said SCA CEO Grant Blackley [pictured].

“We had to take action across the business, like every other company, to fundamentally reimagine where we were,” Blackley told B&T.

“What we weren’t looking to do is necessarily just create a deferral or one-off benefit from all of the actions that we employed.

“Matter of fact, we were looking at not only doing that, but actually creating a lasting positive impact on our operating model, which therefore secured the company, secured our people, and most importantly, gave rise to investing back into the business.”

The results also showed that SCA managed to slash its net debt by half, down from $131.6M this time last year to $66.4M today.

TV leads radio in recovery

The results showed SCA’s television revenues down 11.7 per cent, while audio fell 17.8 per cent.

Blackley explained that this is in line with previous economic crises.

“Like every economic crisis in the last 25 years, you have often seen TV go into that crisis first and you’ve often seen them come out of it first. And we’ve seen that again this time,” he said.

“You’ve often seen radio go in after TV and come out after TV, and that’s occurred as well.”

But with the national advertising market “improving substantially on a quarter-by-quarter basis”, Blackley is confident that SCA is on a path to recovery on the back of its commitment to small businesses.

“What we are seeing is that we have a very strong local market,” he said.

“That SME market is still trailing the national market in terms of its shape of the recovery. Given our exposure to over 19,000 SMEs in 100 markets – probably more than anyone in the marketplace – fundamentally, we have the most to gain in the future.”

A digital future

After launching new curated audio app LiSTNR last week, Blackley confirmed digitisation remains a strong priority for SCA moving forward.

“We are always investing in new smart technology for the business,” he said.

“That makes us fitter and stronger on the way through and it makes us easier to do business with.”

As for LiSTNR itself, Blackley revealed it will be at the core of SCA’s business moving forward.

LiSTNR is the mothership and is firmly in the middle of SCA. So all of our live streaming, podcasting, new music channels, DAB channels, and new news and information shortcasts will all be aggregated within LiSTNR as a central depository.”




Please login with linkedin to comment

grant blackley SCA

Latest News

It’s Friday Quiz Time Again!
  • Media

It’s Friday Quiz Time Again!

Take B&T's trivia quiz for your chance to win a $100 booze voucher and possible cirrhosis of a major internal organ.

by B&T Magazine

B&T Magazine
Big data technology and data science illustration. Data flow concept. Querying, analysing, visualizing complex information. Neural network for artificial intelligence. Data mining. Business analytics.
  • Marketing

SenateSHJ Launches New Trans-Tasman Practices

SenateSHJ has launched a new digital, data and insights capability designed to help clients tackle the growing complexity of communication challenges. SenateSHJ Digital, Data and Insights (DDI) will combine the firm’s existing Digital and Insights functions to create a Trans-Tasman capability focused on digital communication, and the generation and use of data to improve communication. […]

New BrandStory Format From Bonzai Allows 3x More Ad Space on Mobile
  • Media

New BrandStory Format From Bonzai Allows 3x More Ad Space on Mobile

Creative technology platform Bonzai has announced the launch of BrandStory – a new premium mobile ad format. BrandStory offers triple the ad space and 2.8 times greater time in view than single scroll ad formats, addressing the surging demand from brands worldwide for more real estate to drive real results by seamlessly intertwining awareness, exploration […]

B&T’s Search For Australia’s Greatest Ad Heads To Channel 7
  • Advertising

B&T’s Search For Australia’s Greatest Ad Heads To Channel 7

B&T went through the looking glass this morning, with editor-in-chief David Hovenden (above) appearing on Channel 7’s The Morning Show to get the general public involved in our search for Australia’s Greatest Ad. Hovenden chatted with Kylie Gillies and stand-in host Matt Doran about what makes a great ad and showcasing some of our favourites […]

by B&T Magazine

B&T Magazine
Opinion: The Tall Planner’s Kate Smither On The DBA Dilemma
  • Opinion

Opinion: The Tall Planner’s Kate Smither On The DBA Dilemma

The science is not in question – smarter people than I, with far more data, have codified it. The logic is not up for grabs…it makes sense that creating mental shortcuts to your brand keeps you at the top of your mind. Lead image: Kate Smither – Owner, The Tall Planner I wouldn’t even take […]

Opinion

by B&T Magazine

B&T Magazine
African woman using a cellphone in an office alone
  • Marketing

Ortto & Tall Bob Partner To Deliver Better SMS & MMS For Australian & NZ Businesses

Two Australian-born technology providers have joined forces to bring more power and choice to marketers in Australia and New Zealand with mobile messaging that is more local, cost-effective, and integrated. It’s a partnership that sees two Australian software companies come together to deliver a world-class mobile-first solution for marketers building data-driven, personalised, omnichannel campaigns. While […]

Slew Of New Hires At Snap Inc.
  • Media

Slew Of New Hires At Snap Inc.

Snap Inc. has announced a number of new recruits. B&T unaware if it positively impacted SEEK's share price.

Reddit Gets Playful Brand Refresh
  • Technology

Reddit Gets Playful Brand Refresh

This will be of interest to any Reddit fans, graphic designers or lovers of an orange so bright it burns the retinas.

Zitcha & Broadsign Partner To Drive Global In-Store Retail Media Market
  • Advertising

Zitcha & Broadsign Partner To Drive Global In-Store Retail Media Market

Zitcha and Broadsign have teamed up to integrate the Broadsign out-of-home (OOH) advertising platform with Zitcha’s retail media platform. The collaboration empowers retailers to maximise and monetise in-store digital display networks and enables advertising partners to easily view and book available in-store inventory and review campaign performance alongside the retailer’s other media channels. With the […]

Double Rainbouu & 7-Eleven Launch Exclusive Summer Fashion Label
  • Marketing

Double Rainbouu & 7-Eleven Launch Exclusive Summer Fashion Label

Today, 7-Eleven has announced a one-of-a-kind collaboration with the popular Sydney-based anti-resort wear label Double Rainbouu. Dropping tomorrow, December 1, just in time for summer, this limited-edition capsule will infuse the fashion brand’s rebellious spirit with a distinctly iconic 7-Eleven flavour. The unisex collection features five must-have styles comprising two signature Hawaiian shirts, a peaked cap, a bucket hat […]