SCA adjusts earnings forecast citing ‘challenging and short’ advertising markets

Southern Cross Austereo has downgraded its expected earnings for this financial year, saying it now expects its earnings before interest, tax, depreciation and amortisation (EBITDA) will fall below last year’s $168m.

The news comes after the media group provided guidance at its half-year results on 31 December 2016 that EBITDA for the full financial year would be at the lower end of a range of $177m – $183m.

The earnings adjustment was revealed today to the ASX as the media group also announced it had executed the agreements for sale of SCA’s northern NSW (NNSW) television assets and operations to the WIN Television Network for $55m.

According to the statement, all necessary conditions are expected to be satisfied for completion of the sale to take place with effect from 31 May.