Southern Cross appoints new chairman, reports profit slump of 24 per cent
Southern Cross Media has posted a half year result showing a slump in profits and a decline in revenue for the second half of 2014. 
The company also confirmed Peter Bush as its new chairman. He replaces Max Moore-Wilton who has been chairman since 2007.
Net profit after tax was down to $34.7 million, a 24 per cent decline, and revenue was down to $307.6m, a 7.3 per cent fall. The company’s EBITDA of $85.m was also down 18.3 per cent.
The company is carrying significant debt and has been hit hard following the departure of 2Day FM radio duo Kyle and Jackie O to Australian Radio Network’s Kiis FM.
CEO Rhys Holleran said: “The first half results for FY 2015 reflect challenging conditions in television advertising markets and a reduced metro radio market share. In 2015, we are strengthened by the talent line ups in metro radio and are confident that the strategic direction of the company and the focus on debt reduction will put the company in a sound position to improve over this financial year and the next.”
Bush is currently chairman of Pacific Brands, chairman of Mantra Group and has also served on the boards of Nine Entertainment Holdings, Insurance Australia Group, Miranda Wines, McDonalds Australia Limited and Lion Nathan.
Net debt for the group was reduced by $14.8m to $573.1m.
The companies share price closed on $0.935 yesterday, up 1 point.
Robert Burton-Bradley
Net profit of $34m isn’t bad even if it is slightly down. How’s Mumbrella faring this year?
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Sam – a 24% drop in profits can hardly be described as “slightly down”. In business jargon a 24% drop in profits is better described as “up sh** creek” and quite possibly “without a paddle”.
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i have no idea how anyone in their management team still have jobs! This result on their watch is deplorable and they are responsible
Clearly the shareholders need to remove them given they won’t jump themselves
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