Southern Cross Austereo (SCA) has released the results of a full year of trading.
SCA has listed its highlights for the year ended June 30,2024 included:
• FY24 revenue was $499.4 million, down 1% on FY23, while underlying EBITDA of $66.2 million was down by 14% on FY23.
• LiSTNR achieved underlying EBITDA profitability in the fourth quarter of FY24 as previously forecast. Digital revenue reached $35.0 million, up 42% on FY23. Digital revenue in H2 FY24 was up 57% on H2 FY23. Since FY19, SCA has grown its digital revenue at a compound annual growth rate of 34%.
• SCA has re-commenced a strategic review of its non-core regional television assets and is in active negotiations with several parties with an interest in acquiring those assets.
SCA FY24 Full-year financials
SCA CEO, John Kelly, commented: “SCA maintained dominant audience shares in our core metro and regional radio and digital audio markets during FY24. Despite challenging advertising market conditions, our improved financial performance in the second half has provided strong momentum into the new financial year.
Our national leadership in the core buying demographics for men and women aged 25-54 provides our sales teams with a strong platform for continued growth into FY25.
“In the fast-growing digital audio sector, LiSTNR has reached over two million signed-in and addressable users, with around one million of these interacting with LiSTNR monthly. This is testament not only to the range of engaging content on LiSTNR but also to the excellent and personalised user experience delivered by LiSTNR.
SCA’s John Kelly
“The LiSTNR AdTech Hub is driving premium commercial returns for our advertisers and driving growing interest. The LiSTNR AdTech Hub enhances our advertisers’ ability to connect with relevant audiences on LiSTNR and other digital audio distribution platforms.
“With the LiSTNR AdTech Hub and centralisation of SCA’s audio operations largely complete, our capex program is continuing to slow. Capex will be around $10 million in FY25.
“The SCA team has worked diligently to constrain costs against the backdrop of inflationary pressures. In FY24 we kept non-revenue-related costs to $308.4 million (excluding non-recurring items), below our guidance of $310 million, and we are activating further meaningful and permanent cost reductions for FY25. Coupled with reduced capex, this ongoing cost control will deliver improved cash conversion in FY25 and beyond.
“We have re-commenced a strategic review of our non-core regional television assets and are in active negotiations with several parties with an interest in acquiring those assets. The sale of our regional television assets will enable us to focus on optimising our leading radio and digital audio assets, led by LiSTNR, HIT and Triple M.”
Professional board member Marina Go signs on
SCA announced Helen Nash has advised the board that she will retire as a director on 30 September 2024. The Board has appointed Marina Go to join SCA as an independent non-executive director on 1 October 2024. Go has agreed to chair the board’s People & Culture Committee and will also be a member of the board’s Audit & Risk Committee. She will submit for election by shareholders at SCA’s AGM on 25 November 2024.
With a background in media, Marina Go has worked in executive and non-executive roles across a range of listed and private companies across a diverse range of sectors. Go is currently a non-executive director on the boards of Transurban Group, Energy Australia, Adore Beauty, Autosports Group and The Australian Institute of Company Directors.
SCA Outlook
Looking to the future, SCA noted audio revenues for Q1 FY25 are pacing ahead of Q1 FY24, although the market remains short. It added digital audio momentum is continuing, and LiSTNR is expected to be cashflow positive in FY25.
Top image: Fox FM’s Fifi, Fev and Nick