SCA AGM – group revenue down 1%, LiSTNR EBITDA positive

Southern Cross Austereo (SCA)‘s AGM was held on Monday November 25, 2024 with group revenue down 1%, net debt $2.5 million and LiSTNR becoming EBITDA positive, as anticipated, and an increasingly shining light within the SCA stables.

CEO John Kelly said that while shareholders will be aware that SCA fell short of profitability and revenue targets, “our business transformation program has so far permanently removed $30 million from our cost base.”

Radio revenue was down 1.6% to $366.6 million for FY24, regional operations however grew 0.8%. Digital audio revenue by comparison was up 57% year-on-year for the second half of 2024.

The annual report focused on positives going forward, SCA’s dominance of 25-54 audience share, diversity and inclusion targets to be reached by 2027 and ‘active progression of the divestment of television assets‘. A few clues perhaps as to lineups for 2025 within too. Of Jimmy and Nath, who have been caretaker hosts of 2DayFM Breakfast since August, and Mike E and Emma who then took over National Nights, the report said:

“Both shows are well know to Sydney and national audiences, and we’re looking forward to building on their successes.”

New Chairman Heith Mackay-Cruise said is his statement:

“The most recent financial year was a challenging one for our company. With persistently high inflation and slowing economic conditions, broadcast advertising markets were
depressed for much of the year. Group revenue of $499.4 million was 1% below FY23, and underlying group EBITDA of $66.2 million was 14.3% below FY23.

The company recognised a non-cash impairment charge against the value of broadcast radio licences of $228.3 million after tax. The impairment reflects observed market pressures, independent estimates of radio broadcast growth rates showing declines
over the forecast period and a consequent reduction in long term growth rates. We also recognised a separate and higher growth digital audio segment for the first time in FY24.

We responded to these challenges with initiatives to transform our operating model to capture a larger share of available revenues while also completing our digitisation capex program and resetting our cost base, and we expect to see the benefits of these actions in future periods.”

The SCA annual report can be found here.