Financial Results Announcement

Southern Cross Media Group Limited (ASX: $SXL) has announced its financial results for the six months ended 31 December 2023. The company's strategic cost management review has resulted in $30 million in annualised savings, exceeding previous guidance of $15 million. SCA's LiSTNR digital audio ecosystem is on track to achieve a breakeven EBITDA run rate in Q4 FY24 and contribute positively to EBITDA in FY25. The company is actively engaged in discussions with ARN Media and Anchorage Capital Partners to evaluate a non-binding indicative proposal.

Executive Commentary

SCA CEO, John Kelly, highlighted the company's expansion of monetisable audiences in core radio and digital audio markets. Despite industry-wide challenges in national advertising expenditure, SCA's geographic diversity in radio portfolio supported growth in Regional Radio revenues. The number of users signed up to LiSTNR rose 60% year-on-year to 1.8 million, with strong revenue momentum and active cost reduction positioning LiSTNR to achieve a breakeven EBITDA run rate in Q4 FY24. Kelly also emphasized the positive impact of the strategic cost management review and completion of the major digitisation investment cycle on the company's future performance.

Results Overview and Outlook

SCA's financial results for the six months ended 31 December 2023 reflect steady audio revenue, with growth in Regional Radio and Digital Audio offsetting a decline in Metro Radio. The company's LiSTNR digital audio ecosystem continues to show strong revenue momentum and is forecast to achieve a breakeven EBITDA run rate in Q4 FY24. SCA's strategic cost management review is expected to deliver approximately $20 million in savings in FY24, leading to non-revenue-related costs for FY24 being below $310 million. The company anticipates further reduction in capex and permanent savings in FY25. Despite challenging ad markets, SCA's broadcast radio revenues are tracking ahead of the market, and digital audio revenue for Q3 is pacing at approximately 50% growth. The company remains focused on leveraging its operational momentum and strategic initiatives to drive future growth.