Southern Cross Media Surges with 9% Audio Revenue Growth, Eyes Dividend Return

Strong Audio Revenue Momentum

Southern Cross Media Group Limited (ASX:SXL) has revealed a promising start to calendar year 2025, with audio revenues climbing approximately 9% compared to the prior corresponding period. This growth, driven by both broadcast and digital audio segments, notably outpaces earlier guidance and reflects the company’s strategic focus on expanding its footprint in the evolving audio media landscape.

The company’s flagship brands, including the Hit and Triple M networks alongside the LiSTNR digital audio platform, continue to engage a broad audience base, contributing to this sustained revenue uplift. For the ten months to April 2025, audio revenues are also up by around 7%, underscoring consistent performance beyond the initial months.

Cost Discipline and Financial Health

Alongside revenue gains, Southern Cross Media has demonstrated rigorous cost control, with non-revenue related expenses for FY25 now forecast at approximately $265 million. This represents a $5 million improvement on previous guidance and a 2% reduction compared to FY24’s cost base. The company attributes this to embedded cost discipline and active cost-out initiatives, which are helping to enhance operational efficiency.

CEO John Kelly highlighted the company’s commitment to sustaining positive momentum while navigating the challenges of a post-Federal election advertising market, which remains short and difficult to predict. Despite this uncertainty, the company’s financial discipline is positioning it well for the remainder of the fiscal year.

Dividend Resumption Signals Confidence

Perhaps most notably, Southern Cross Media’s board has signaled its intention to resume dividends with a final payout for FY25. This decision follows the elimination of earnings uncertainty from the disposal of TV assets and reflects a reset in the company’s audio and capital base. The forecast leverage ratio below 1.5x by June 30, 2025, further supports this positive outlook.

The resumption of dividends will likely be welcomed by investors seeking income returns, marking a return to shareholder distributions after a period of strategic repositioning. It also signals management’s confidence in the company’s ongoing revenue growth and cost management strategies.

Looking Ahead

While the company’s operational and financial indicators are encouraging, the advertising market’s limited visibility post-election injects a degree of caution into forecasts. Southern Cross Media’s ability to maintain its growth trajectory and cost discipline will be critical as it navigates the remainder of FY25.