‘Strong balance sheet, modest debt.’ SCA details half year report

SCA has highlighted a strong balance sheet and modest net debt, in announcing its financial results for the six months to December 31, 2022.

Reflecting on the latest results, UBS telco and media analyst Tom Beadle told The Age there are likely to be challenges in the advertising market which will weigh on the company’s revenues.

Revenue from the company’s radio network grew 6.8 per cent to $3.2 million, above a market rise of 4.6 per cent.

In presenting the latest set of figures, SCA’s Chief Executive Officer Grant Blackley said “Audiences for our broadcast content in the five metro markets grew to record highs in 2022, making SCA the number one radio network in the all-important 25 to 54 demographic.”

“This is the money demographic, targeted by around 70 percent of advertising briefs.”

“Importantly, we have a strong balance sheet, able to support future growth in consistent returns for shareholders.”

“We have modest net debt.”

Blackley was joined by SCA’s new Chief Financial Officer and former Walt Disney Company executive Tim Young, who elaborated on the half yearly result and the impact of the company’s share buyback.

“Group revenue was flat. While expenses were up, the increase was limited by disciplined cost management.”

Blackley says “SCA creates more live and on-demand audio content than anyone else in Australia. And our investment in digital infrastructure over the past five years means we create an ever-expanding range of content for our audiences to enjoy anywhere, at any time, on the device of their choice.”

“Despite reducing our headcount by 12% since 2019, we have grown our content output by 66% or 400,000 hours over the same period.”

“Awareness and use of our LiSTNR digital audio ecosystem continued to scale. With over 1.2 million signed-in users, and nearly 6 million monthly stream starts, LiSTNR is providing critical mass for brands to reach engaged and addressable audiences at scale. “

“SCA’s Q3 broadcast radio revenue is forecast to show flat to low single digit growth. January Metro revenue was up 3.4% and, in February, is forecast to be up 2.5%.”

“For LiSTNR, we are targeting 2 million signed-in users by July 2024, and we currently forecast achieving cashflow break-even during the 2025 financial year.”