SCA profits up 40.7% with regional affiliate agreements driving revenue gains

Southern Cross Austereo had a positive end to fiscal year 2017, reporting a net profit after tax (NPAT) increase of 40.7%, and revenue growth of $690.8m (up 7.5%).

The company’s NPAT was $108.6m, and EBITDA (earnings before interest, tax, depreciation and amortisation) climbed 5.85% to $177.4m.

SCA attributed the success to advertising revenue growth across all assets, and a successful transition of regional television audiences and revenue to Nine Network on July 1 2016.

Regional revenue brought in the largest numbers, up 10.3% to $382.2m.

Radio in regional areas climbed 3.3%, to $169m while TV revenue jumped 15.8% to $213.2m.

Metro contributed $242.3m to total revenue, up 2% and corporate revenue was up 24.7% to $17.8m.

Grant Blackley, CEO of Southern Cross Austereo, said the company had delivered on key objectives.

“In FY17 SCA has delivered on a number of our key objectives, further optimising our sales and improving the monetisation of our assets, and successfully transitioning our television broadcast business across to the Nine affiliation including rolling out fifteen new local regional news services.

“SCA continues to invest to improve our content and marketing with the introduction of new formats and the incorporating 64 regional radio stations in the HIT and Triple M families.”

Blackley said the company would look to further develop its entertainment asset base and improve monetisation of its assets going forward.

SCA’s financial results come as the network announces its investment in property owner QIC, to provide out of home solutions in shopping centres.

The new offering will see QIC provide the audience and SCA will deliver audio visual content for shopping malls.

SCA’s venture into out of home will begin in centres in Canberra, Toowoomba, Robina, Logan, and Melton.

Blackley said the partnership was the “perfect fit” for an entertainment company.

“As we lean on our considerable entertainment assets and extensive broadcasting experience, this will provide an unparalleled opportunity to unite local audiences and local businesses in the out of home environment,” Blackley said.

“Our entry into the high growth digital out of home market is and exciting phase to the continued development or expansion of SCA suite of digital assets including our new podcasting business PodcastOne.”

SCA said consistency of metro content, full establishment of regional television news and monetisation of digital radio will continue to deliver revenue growth.

New revenue streams, including PodcastOne and the launch of regional out of home advertising business, Mall Media will aim complement revenue streams.


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.