Southern Cross Austereo (SCA) has experienced a negative first half of the 2018 financial year, posting a dramatic drop in overall profit and a slight drop in revenue.
The group’s net profit after tax fell 21.2 per cent to $48.5 million in the six months to 31 December 2017 (compared to the previous corresponding period), while revenue dropped 5.3 per cent to $333.3 million.
Expenses before interest, taxes, depreciation, and amortisation was down 15.7 per cent to $78.1 million.
SCA chief executive Grant Blackley (pictured above) said the dour results reflected “two consecutive years of heavy lifting” to improve the company’s balance sheet.
“With the systematic divestment of non-core assets including the northern NSW TV licence and 45 transmission towers, the company has successfully reduced debt and leverage to improve the company’s financial health, laying the foundation for a successful refinancing of our debt facilities and accompanying reduction in finance costs,” he said.
“Our investment in rebranding regional radio stations, increasing the number of regional radio surveys and educating media and advertisers about the benefits of regional audiences, has paid off, with revenue from national advertisers in regional markets rising sharply by 12.8 per cent.”
Blackley also reiterated SCA’s commitment to improving the performance of 2Day FM in the breakfast slot.