Southern Cross Austereo $284.9m net loss blaming weak TV ad market for poor results

Grant Blackley

Grant Blackley

Southern Cross Austereo (ASX: SXL) has today posted a net loss for the second year in a row, recording a loss of $284.9m, which was an improvement on last year’s loss of $296m.

SCA’s losses, like Seven and Nine have been driven by writedowns, with net profit after tax also down 18.7 per cent to $64.8m.

New CEO Grant Blackley acknowledged what he described as a “disappointing” financial result but noted the TV and radio broadcaster was implementing new strategies to turn the result around.

“The full year FY 2015 results reflect a weaker television advertising market and a reduced, but stabilised metro radio market share,” said Blackley.

“Whilst the financial results have been disappointing, I am excited by the opportunities that the group presents and have begun implementing a number of strategic and operational initiatives that are focussed not only on delivering short term improvements in financial performance, but positioning Southern Cross Austereo for long term success.”

Source: SCA investor presentation

Source: SCA investor presentation

SCA’s revenues were down 4.6 per cent to $611.1m while earnings before interest, tax, depreciation and amortisation (EBITDA) was down 13.1 per cent to $163.2m.

Regional revenue was down 0.4 per cent year on year to $361.6m, with metro revenue also down 9.9 per cent year on year to $224.1m.

In regional, TV dropped by 2.9 per cent to $202.3m for the year, down from last year’s revenue of $208.4m.

Radio did better in the regional markets, up by 3 per cent from $154.7m to $159.3m in revenue.

In the metro markets, radio revenue was down by 9.9 per cent from $248.7m to $224.1m.


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