Southern Cross Austereo announces profit of $65m

Southern Cross Austereo’s profit of $65m: Weak TV market, radio share stable

•  Southern Cross Austereo announces reported NPAT excluding significant items of $64.8m, dividend maintained at 3.0 cents per share fully franked

Regional TV broadcaster and Australia’s biggest radio company Southern Cross Media Group Limited has announced its financial results for the full year to 30 June 2015. Southern Cross Austereo CEO Grant Blackley (pictured) advised that the reported net loss after tax of $284.9m had been impacted by the impairment of the group’s metro and regional assets. Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) is $163.2m. Net profit after tax (NPAT) excluding significant items is $64.8m.

Key highlights include:
•  Regional Radio advertising revenue growth for the 4th consecutive year, up by 3.5%
•  SCA Regional TV revenues outperform the market
•  Regional EBITDA up 1.9%, margins up 0.7%
•  Strong EBITDA to cash conversion – 100%
•  Net debt reduced by $81.0m to $506.9m and net finance costs down 13.7%
•  Leverage ratio reduced to 2.84x, increasing covenant headroom (covenant 3.75x)

Blackley said “The full year FY 2015 results reflect a weaker television advertising market and a reduced, but stabilised metro radio market share. 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 focused not only on delivering short-term improvements in financial performance, but positioning Southern Cross Austereo for long-term success.”

Chairman Peter Bush announced a final fully franked dividend of 3.0 cents per share and this brings the full year dividend to 6.0 cents per share, a payout ratio of 67% on earnings per share excluding significant items.

Source: Southern Cross Austereo

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