SCA reports a better than expected quarter for Q1 2021
Southern Cross Media Group (SCA) has shared with investors that its revenues continue to improve with the previous quarter advertising revenues down only 4.3% compared to the corresponding period in 2020, ahead of the projected negative 6% to 8% it had originally flagged.
It stated that audio revenue is growing “underpinned by a strong increase in digital audio listening and resulting monetisation”.
Full Financial Year EBITDA is forecast to be between $118 million and $125 million, while net debt is forecast to be between $55 million to $65 million.
The media group is confident that audio earnings, which represent 68% of the group earnings (on average between second half FY2019 and first half FY2021) are expected to expand – led by an accelerating digital audio market. SCA cited a 70% year-on-year increase in live streaming, amounting to a total of 1.6 million live radio streaming listeners in March 2021.
After being dropped by Nine for WIN in March, SCA stated that its television affiliation negotiations with Network Ten are proceeding well for the three aggregated markets (regional Queensland, Southern NSW and regional Victoria).
“Workflows will ensure a seamless transition back to Ten,” the presentation stated. “Lower programming costs will naturally mitigate TV revenue reduction.”
Indeed, cost control remains a key focus for SCA with Financial Year 2021 non-revenue related costs forecast to be $250 million to $255 million, ahead of the previous guidance of $255 million to $260 million.
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Olivia Kruimel is the managing editor at Mumbrella. She has more than 15 years of experience in journalism, communications and marketing. Her journalism career began at Fairfax Media (now part of Nine) and includes various B2B publications such as B&T, Travel Today and ALB. As a marketer Olivia has worked for Standard Chartered and various global law firms.
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