Revenue falls 18% at SCA, but cost cutting measures and equity raising result in improved balance sheet

Revenues at media company Southern Cross Austereo fell 18.2% for the financial year ending June 30, 2020, resulting in $540.8m in revenue across the business, compared to $661m the year prior.

Despite the drop, the business still reported a profit excluding significant items of $34.1m and an underlying net profit of $35.8m, with the business saying its cost-cutting measures and equity raising have left it with a much healthier balance sheet in FY20.

Across all four quarters, SCA reported a positive EBITDA (earnings before interest, taxes, depreciation, and amortization), coming in with a final figure of $108.2m – down almost 34% from FY19.

SCA’s Group results for FY20 [click to enlarge]

An equity raising round in April has resulted in $160.8m in net proceeds which remain on the balance sheet. As a result, the company’s net debt has been reduced to $131.6m, down from $292.6m.

CEO Grant Blackley said broadcast audiences are still hungry for content and that the business is continuing to improve its offering to the market.

“Strategic decisions taken in recent years will enable the business to emerge from the COVID-19 crisis with a lean and efficient operating model focused on recovering the earnings lost in the year just ended. We will continue to build the strength of our radio network by investing in key timeslots and markets. At the same time, we will grow our digital audio ecosystem with premium content, platforms and products attractive to our listeners and advertisers,” said Blackley.

SCA did not pay dividends to shareholders and does not expect to until 2022.

A wrap up of SCA’s results [click to enlarge]

The business reports podcasting arm PodcastOne Australia grew its revenue by 96% to $4.6m, making it now cashflow positive.

How COVID-19 impacted SCA [click to enlarge]

Expenses across the business reduced by $65.8m – 12.8% – with employee-related expenses and discretionary spending reduced significantly. SCA has rolled out significant redundancies in the last 12 months, as well as reduced hours and enforced leave during COVID-19.

The business also announced today that chairman Peter Bush has stepped down and will retire at the AGM in October. Leon Pasternak will also retire at the AGM. Rob Murray will replace Bush as chairman, having been involved with the board since 2014. Carole Campbell joins as a non-executive director and a member of the audit and risk committee.


Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.



Sign up to our free daily update to get the latest in media and marketing.