Peter Bush expects SCA to bounce back from “disappointing” FY18 despite “underperforming” 2DayFM
Southern Cross Austereo is expecting to bounce back from a “disappointing” financial year, said network chair Peter Bush at yesterdays Annual General Meeting.
He began his address by acknowledging that the “2018 financial year fell short our expectations.”
Bush was referring of course to SCA reporting a drop in EBITDA of 12.8% in its end of financial year results for 2017/18.
The results also saw a 5.3% fall in revenue to $654.1m, which came despite an increase in regional radio revenue, up by 4.5%, a seventh consecutive year of growth.
The SCA chair was frank when addressing the impact that 2DayFM’s continued poor performance has had on the network’s metro results overall.
“Our metro radio revenue was down 1.8% and EBITDA was down 4%,” he said, before listing “2DayFM – and its Breakfast show in particular” as a major contributing factor.
“2DayFM’s ratings and resulting commercial performance continue to lag our expectations, and are the core focus of our content and sales teams.”
Despite this. Bush highlighted the fact that “the group has begun the new financial year in a strong financial position and with positive momentum that we are aiming will return the group to growth in the current financial year.”
Bush also noted the good ratings and commercial performance of the new back-to-back Drive shows on the Hit Network for 2018, Carrie & Tommy and Hughesy & Kate.
The chairman was also pleased with “the emergence of PodcastOne as Australia’s leading commercial podcast network.
Other points of business during the AGM also saw Bush and Leon Pasternak re-elected as directors.