Radio and podcasting grow Southern Cross Austereo earnings by 6.1%
The growing strength of Southern Cross Austereo’s metro radio and podcast divisions saw first-half earnings in the six months to December 31 up 6.1% to $82.9 million.
But net losses tallied $119.3 million, after a $37.5 million profit in the same period a year before.
The SCA audio business division – which incorporates metro and regional radio and podcasting – had a 3.8% spike in revenue and a 7.3% expansion in earnings before interest, tax, depreciation and amortisation.
CEO Grant Blackley reported, “SCA outperformed in each sector and strong and disciplined cost controls were evident.”
Audio expenses grew by 2.1%, he noted.
SCA operates 80-plus radio stations across its Triple M and Hit networks.
Metro radio had revenue growth of 6.7% to $123.6 million while regional radio posted $95.3 million, up 0.7%.
Podcast revenue grew 400%, with the company says its road to monetisation was improving.
“SCA’s new national structure and workforce planning initiatives are starting to pay dividends,” says Blackey.
“The streamlined business and decision-making processes are delivering operating efficiencies and improved cost control.”
He also attributed educating advertisers to the advantages of radio for financial growth.
Revenue was up 0.2% to $335.7 million.
However, the company also posted a net loss of $120.3 million hit by a drop in TV revenue and a write-down of its television assets.
Dividing its regional division into TV and audio led to a one-off non-cash impairment of $226.9 million.