Southern Cross Austereo books revenue lift in first year under Blackley, predicts better to come
The return to form of Southern Cross Austereo under the leadership of Grant Blackley has been confirmed after the company reported a jump in net profit of 19%.
Southern Cross reported a lift in revenue for the full year of 5.1% to 642.3m with net profit after tax of $77.2m. Earnings before interest, tax, depreciation and amortisation were up by 2.8% to $167.7m.
The result came on the back of the broadcaster’s landmark deal with Nine Entertainment Group to take over affiliate broadcast rights from WIN in April.
It’s the first full-year result since Blackley took the helm of the embattled business at at the end of June last year after the departure of his predecessor, Rhys Holleran.
Southern Cross had weathered a tumultuous two years marked by the shock defection of Kyle and Jackie ‘O’ Henderson to ARN’s Kiis, which saw audience figures and advertising revenue for the its flagship 2DayFM plummet.
Blackley said the positive result represented a reset for the business which was now outperforming the market and was bullish on the coming year.
“This year’s results reflect the operational and financial reset of Southern Cross Austereo, which has delivered improved financial performance for FY16 with the prospect of further growth in 2017,” Blackley said.
“SCA’s radio and television businesses are consistently outperforming the market, with improved audience share, consistent reinvestment in our content and marketing and a continuous focus on stronger monetisation of our assets.
He said that diversification would be one of the pillars of the business in the coming year.
“As evidenced by our new partnerships with Vevo and Australian Traffic Network, FY17 will see Southern Cross Austereo further improve its depth as one of the most diverse media companies with a broad range of media assets,” he said.
Southern Cross Austereo shares closed at $1.23 yesterday giving the company a market capitalisation of $945m.
Well done Grant. Thought you must have been up to something good in that big office!!
Robbo.
User ID not verified.
Well done, Grant. Thought you must have been up to something good in that big corner office.
Robbo.
User ID not verified.
It shows the benefit of having a metro leader running the business instead of the former who would never rise above regional status.
User ID not verified.