SCA posts good numbers in lead up to proposed Seven merger
Listnr has increased revenue share
Southern Cross Austereo is cutting a confident figure ahead of its proposed merger with Seven West Media, posting solid revenue for Q1 and with EBITDA up significantly year on year.
In a price-sensitive filing to the ASX this morning, SCA revealed quarterly revenue (July-September) of $105.1m, up 4.7% on the same period last year. EBITDA (earnings before interest, tax and other deductions) was $14m excluding non-recurring costs of $1.8m.
That EBITDA result was up 129% YOY.
SCA did not state what the $1.8m non-recurring costs were.
In other positive news, SCA said its Listnr digital platform increased its share of digital audio revenue to 49%. It also said it had managed to pay down some of its debt, with $63m debt remaining.
In a written statement, SCA CEO John Kelly – who will leave the role if the merger goes ahead with SWM – described the company as having “positive operating momentum” and “disciplined cost management”.
The merger with Seven was proposed last month, and involves SWM CEO Jeff Howard assuming leadership of the merged entity. Kelly will be the group MD of audio.
In terms of board arrangements, SWM’s Kerry Stokes will initially hold the chair, but will soon retire, leaving a board of 4 SWM directors and 3 SCA directors.
The firms expect cost savings of between $25-30m.
There was some consternation among SCA shareholders that the merger, which is technically an acquisition by SCA of SWM, does not need to be approved by them.
Only Seven West Media shareholders need vote on the deal, which also still has to be approved by regulatory authorities.
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