Southern Cross Media Group’s first full-year results of being a merged business is in and despite growing its audience, its ad revenue declined.
Across audio, TV and publishing its total ad revenue dropped 4.8 per cent, however the total audience grew to 20 million Australians. This reflects a “soft ad market”.
The company’s group revenue of $1.9 billion was 4.5 per cent lower than the previous financial year. This was due to the advertising revenue falling 4.8 per cent to $1.7 billion.
The merged EBITDA (earnings before interest, tax, depreciation and amortisation) was down 12.8 per cent to $200 million including onerous contracts (though aren’t all contracts onerous?). Excluding the onerous contracts it was down 15.8 per cent to $192 million.
Seven’s TV audience share grew to 42.5 per cent (up 1.3 percentage points) and its overall TV audience climbed 2.8 per cent. Its TV revenue came in at $1.3 billion — 6.6 per cent lower than FY25. Seven said the overall TV advertising market declined 9.9 per cent.
Guideline SMI said that TV bookings declined in June, May and April this year. In June broadcast TV was down nine per cent from the following year, in May it was down 4.1 per cent and in April a massive 24.8 per cent.
The huge decline in April was in direct result to the near absence of advertising from the Political Parties/Unions category due to the federal election. But, for May and April the federal election wrapped up on 3 May, leaving the months unaffected by the Political Parties/Unions category.
On BVOD, according to Southern Cross, 7plus achieved “its best result ever”, averaging 42.2 per cent audience share, up 4.3 percentage points. Seven Plus finished the financial year with 16.7 million registered users, up from 15.8 million in FY25.
“Trading conditions were difficult, particularly in television through Q4, and revenue came in below where we expected. Share gains and cost discipline partially offset that, and EBITDA finished above our revised guidance. Digital kept growing while broadcast markets contracted. We delivered our merger synergies a year earlier than expected, expanded our cost program, and refinanced our debt,” said SCA’s managing director and CEO, Rohan Lund in prepared remarks.
“While we expect conditions to stay subdued, our focus doesn’t change: bring Australians together through content they love and trust, turn that connection into audiences that work for advertisers, and run the business with discipline and unity.”
Southern Cross’ Audio business told a more positive story. Its total revenue rose 1.4 per cent to $429.9 million. This was led by advertising that also grow 0.8 per cent bringing in $411.5 million of the total revenue.
Digital revenue grew $6.5 million (14.3 per cent), offsetting a 0.9 per cent decline in metro and regional radio broadcast, where share gains of 1.7 percentage points could not fully offset a 6.8 per cent contraction in the metro radio market. It is the first year digital growth has outpaced the broadcast decline.
Publishing revenue fell 3.1 per cent to $187 million, with advertising down 5.4 per cent. Other revenue was slightly down by 0.8 per cent, with circulation and subscription revenue flat year-on-year Digital revenue in this space grew 5.7 per cent.
It was announced in September of 2025 that Seven West Media and Southern Cross Media Group would merge its TV and audio businesses. Trading officially began in January of this year.
Since the merger, the business has had three chairs, with Heith Mackay-Cruise only lasting 73 days in the throne.
During this time media mogul Kerry Stokes also walked away from the business after 30 years in charge, closely followed by the departure of CEO Jeff Howard. These comings and goings have been described as a “power struggle” and a “game of thrones” as executives jostle for power within the new media group.
Lund addressed this in an investor call this morning.
“Since May this year, we’ve changed our executive leadership team, which now consists of a highly experienced team with strong leaders who have the skills and knowledge to help us achieve our ambition,” he said.
