“We continue on our transformation journey.” SCA posts improved half-year results

A week on from announcing a fresh round of redundancies within the organisation, SCA says it is delivering on its transformation strategy as it reports an improved financial performance in its half-year results.

The company has also today announced it has reached a deal to offload its regional TV licences.

SCA’s 1H FY25 reported revenue was $209.7 million, up 5.3%.

Earnings before interest, taxes, depreciation and amortisation of $24.1 million were up 24.6% on the same period last year.

Net profit after tax was $3.2 million, up 5.5% on the same period last year.

SCA says this result was driven by the company’s continuing dominance of the lucrative 25-54 audiences in metro and regional radio markets, improving share of metro radio advertising markets, strong growth in digital audio revenues and a disciplined approach to cost management.

Digital revenue grew to $22.1 million, up 42% on the first half of 2024.

SCA says strong growth in both net cash from operations (up $10 million) and cash conversion for 1H FY25 saw a reduction in net debt, though the SCA Board has  determined that it will not pay a half-year dividend for 1H FY25, instead focusing on debt reduction.

The company reports that the sale of the 3-Agg TV Licences to Network Ten has cleared all regulatory conditions and will complete on 1 March 2025, with SCA announcing it has signed a binding proposal for the sale of its television assets in Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin and remote, central and eastern Australia to Australian Digital Holdings Pty Ltd.

The overall amount to be received by SCA as a result of this sale is $6.35 million.

SCA intends to apply upfront cash consideration from the sale of its television assets towards reducing net debt.

Looking ahead this year, SCA says audio revenues continue to pace well, digital audio momentum is continuing and – four years on from its launch – LiSTNR is forecast to be profitable for FY25.

The company expects double-digit revenue growth to continue for LiSTNR both this year and beyond.

SCA CEO John Kelly said “SCA has delivered a strong result for the first half of FY25 as we continue on our transformation journey.”

“The SCA Team have worked very hard and we have delivered on all our key commitments – with continued operating momentum translating to improved financial performance.”

“The embedded cost discipline and effective cost management within the business has meant that we have again been able to reduce costs, despite the ongoing inflationary market pressures.”

“The entire SCA Team is re-energised by the delivery of our consecutive half yearly improvement in our operating and financial performance – our focus remains on further improving the positive operating momentum within SCA to drive improved results and returns for all SCA stakeholders.”

Kelly says the successful exit from television allows SCA to focus on building upon the positive operating momentum within its radio and digital audio assets, led by LiSTNR, HIT and Triple M.

SCA has also today announced the appointment of Toby Potter as Chief Financial Officer and a member of the Senior Leadership Team.

Potter has been responsible for overseeing the company’s financial stewardship in recent months since stepping into the role of Acting CFO in December 2024.

Potter’s role supplements Sarah Tinsley’s recent appointment as Chief Legal Officer and Company Secretary.