SCA chairman: “S-H-I-T happens”
This morning, Southern Cross Media held their AGM.
Chairman Max Moore-Wilton received questions about whether there is a cultural problem among on-air talent following recent gaffes from Eddie McGuire, Kyle, and the royal prank call.
"These incidents were unfortunate, no doubt about that," he said. "But in the immortal words of someone whose identity I cannot recall, S-H-I-T happens."
He said measures were now in place to ensure similar situations did not happen again.
In his address to the AGM, the chairman also revealed that the much speculated affiliate agreement with SCA and Nine was "dead" due to the reach rule not being relaxed. "Despite what we thought and what the industry thought, that change has spectacularly not happened and the matter has been referred to a parliamentary committee," said Moore-Wilton.
Talking finances, the chairman said: "It is our intention of the company to reduce debt levels by 7.5 times over the next twelve to eighteen months and we are on track."
The AGM talked about the ongoing challenges of reduced ad spending, even though first quarter revenues had been boosted by election advertising, which the network contribute to an increase in spending of around 7%.
- Metro radio revenues are up 5.4%
- Regional radio is up 2%
- Television is flat
The company's remuneration package was accepted by investors, which includes a $360,000 increase for CEO Rhys Holleran (from $1.3m to $1.66m).
But SCA shareholders delivered a first strike against the remuneration report, with just under 68% voting in its favour. A first strike occurs when more than a quarter of shareholders vote against it. If a similar result occurs at next year's AGM, the company could face a spill of several board positions.
Read more in The Australian.
See all the SCA FY13 figures here.
The AGM presentation from ASX is here.