SCA addresses CEO’s departure following release of half-year results

SCA has addressed the sudden departure of its Managing Director and CEO, during the break down of its half-year results following the recent merger with Seven West Media.

Jeff Howard stepped down after a little over a month in the role.

In his ASX statement, Executive Chairman Heith Mackay-Cruise thanked Howard for his efforts across the period of transition, saying “As the company accelerates the delivery of its strategy, SCA’s newly constituted board has determined it is the appropriate time to appoint new leadership to take the group forward and execute on our plans.”

Asked whether Howard’s resignation was the result of a disagreement, Television and Audio CEO John Kelly replied “This is about accelerating the speed of our strategy, that culminated in changes to the leadership team.”

Kelly then confirmed that in order to execute the company’s strategy, a change in the leadership team was required.

Given what SCA described as a ‘frustrating’ economic environment, no interim dividend was declared, with the organisation focusing on debt reduction.

Half-year group revenue was $1 billion (1,023.8) for the businesses, down 1.5% from the previous corresponding period.

Pro forma net debt of $338 million was reduced by $16 million.

Pro forma earnings, before interest and tax, fell 14.4% to $106.9 million. Group expenses rose slightly to $901.2 million year-on-year.

Kelly said “We are particularly pleased with our earnings turnaround … and reap the benefits of a fully refurbished audio business with LISTNR at the heart of our best in class audio service.”

Kelly added that the company has significant confidence in continued earnings growth in the audio sector.

“Our brand friendly local content has allowed us to have strong sales.”

He also identified significant opportunities for cross promotion of radio and LISTNR on Seven.

“Our report card reads well with more room for improvement in the months ahead.”