What's New September 20, 2013

SCA FY13 revenue falls

Southern Cross Media has released their annual report today. Whilst the overall figures were released previously, the annual report goes into further detail.

Overall, total revenue was $653m, down 5% (-24m) from the previous year, with EBITDA for the full year of $211m. Allowing for depreciation and amortisation costs, and net finance costs, the profit before tax improved to $133m, resulting in NPAT of $96m.

The SCA regional radio network improved revenue performance slightly to $176m, which includes 8 months of the Sunshine Coast stations revenue. Regional television fell by $32m to $214m, with SCA holding Network TEN responsible saying "the TEN product continued to struggle with ratings".

Across the regional radio and television network, SCA has reduced expenses by 8% to $263m which despite the overall regional revenue falling by 5.6%, has resulted in an EBITDA margin improvement to 32.7%.

Across the metropolitan radio group, revenue has fallen by 4%, to $263m. In the report SCA has commented that revenue was impacted by both the Sandilands and UK incidents:

"The metropolitan business has suffered share loss exacerbated by the residual effects of the Kyle Sandilands on-air incident, and the effects of the UK incident.

Slightly declining audience shares on Today during the year have also affected the Group’s ability to monetise the Today brand as strongly as has been the case. Triple M has improved audience ratings which has assisted in ameliorating the impact on overall revenues.

Revenue loss plus increased compliance costs have been issues that have impacted the profit results of the year. A strong focus has been on investment in content through re-signing talent, restructuring key shows and the addition of new shows."

Southern Cross Media Chairman Max Moore-Wilton referred to the advertising market as being quiet;

"Our metropolitan radio business has seen some share loss over the year; however we saw some improvement in Q4 of FY13. The business (continues) to operate in a challenging, short term market. Costs have been impacted by increasing investment in content and increased digital access fees for the Dab+ spectrum.

Even though commercial advertising markets have been subdued, audience delivery on our Triple M network has improved. The Today network stations continue to be leaders in FM radio".