SCA FY24 results: Positives for digital, potential offload of TV assets

Southern Cross Media Group (SCA)‘s FY24 results have been released with a positive first six months of the year somewhat offsetting declines in H1. LiSTNR reached EBITDA profitability in Q4, as was anticipated, and the company is in ‘active negotiations’ to sell their floundering regional TV licences.

The negatives were that revenue of $499.4 million was down 1% on FY23, and underlying EBITDA of $66.2 million was down by 14% on FY23. Television saw losses in revenue both halves with metro radio a significant loss H1 somewhat offset by gains H2. Broadcast Radio (metro and regional) saw an overall 1.7% decline, and 8.6% for television.

There were several positives though, with digital assets and revenue being foremost.

Digital revenue was $35 million, up 42% on FY23 and since FY19, SCA has grown its digital revenue at a compound annual growth rate of 34%. LiSTNR now has 2 million signed up users and is expected to be cashflow positive for FY25. Now that digital transformation is complete capital expenditure should reduce significantly.

There was a focus on SCA broadcast radio station’s domination in the 25-54 age demographic, men and women. Metro radio revenue share did increase every month since December 2023. Regional radio advertising revenue grow by 0.8% for FY24 and regional audiences by 25% over the last five years.

The overall position was that audio is resilient, with SCA CEO John Kelly saying:

 “Despite challenging advertising market conditions, our improved financial performance in the second half has provided strong momentum into the new financial year.

In the fast-growing digital audio sector, LiSTNR has reached over two million signed-in and addressable users, with around one million of these interacting with LiSTNR monthly. This is testament not only to the range of engaging content on LiSTNR but also to the excellent and personalised user experience delivered by LiSTNR. “The LiSTNR AdTech Hub is driving premium commercial returns for our advertisers and driving growing interest. The LiSTNR AdTech Hub enhances our advertisers’ ability to connect with relevant audiences on LiSTNR and other digital audio distribution platforms.

We have re-commenced a strategic review of our non-core regional television assets and are in active negotiations with several parties with an interest in acquiring those assets. The sale of our regional television assets will enable us to focus on optimising our leading radio and digital audio assets, led by LiSTNR, HIT and Triple M.”

Helen Nash advised the Board that she will retire as a director on 30 September 2024. The Board has appointed Marina Go to join SCA as an independent non-executive director on October 1. She will submit for election by shareholders at SCA’s AGM on 25 November 2024.