Over 1,700 SCA staffers are eligible for the JobKeeper subsidy
In a market update shared with the ASX on Wednesday, Southern Cross Austereo says it plans to use the Government’s JobKeeper allowance to offset revenue losses.
Radio Today first reported that the company had registered for the wage subsidy, suggesting the business is anticipating revenues to decline by at least 30%.
In an email to employees from CEO Grant Blackley last Tuesday, SCA detailed its plans to reduce payroll liability in a bid to survive the economic impact of the pandemic.
In the email, obtained by Radio Today, Blackley outlined a number of new measures the business was implementing, including “full” and “partial” stand-downs for non-essential workers.
SCA said all affected and eligible workers will receive the pre-tax $1,500 fortnightly payment.
SCA also confirmed that about 1,750 of its employees were eligible and that the subsidy was included in its operating cost reductions for April.
More than 728,000 businesses have signed up to the $130 billion program, covering 4.7 million employees, with more expected to join as payments begin to flow from today.
The Government expected six million workers would receive the allowance when it launched the initiative, a flat-rate payment that employers must pass on to their employees in full.
The good news is that SCA achieved positive EBITDA in April, with revenue declines partially offset by some cost-saving measures, as shares closed at 0.13 cents on Wednesday.
The company’s net debt is now at $161.8 million following the broadcaster’s successful $169 million capital raise, which was backed by 92% of its institutional investors.