Southern Cross Media Group has finalized the sale of its remaining television assets, fully committing to its 'All About Audio' strategy with a 5% rise in audio revenues for FY25 and a renewed focus on debt reduction and dividends.
- Completed sale of remaining TV assets to Seven West Media
- Total TV asset sale proceeds between $19 million and $24 million
- FY25 audio revenues grew approximately 5%, driven by market share gains and election advertising
- Net debt reduced to around $68 million with leverage ratio below 1.3 times
- Board announces director retirement and plans for succession
Full Divestment from Television Marks Strategic Shift
Southern Cross Media Group Limited (ASX – SXL) has completed the sale of its remaining television assets across Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin, and other remote regions to Seven West Media. This transaction finalizes Southern Cross’s exit from television broadcasting, aligning fully with its strategic pivot to focus exclusively on audio content under the 'All About Audio' banner.
The upfront cash consideration of $3.75 million received on June 30, 2025, was immediately applied to reduce the company’s net debt. When combined with earlier proceeds from the sale of 3-Agg TV licences to Network Ten, the total consideration for Southern Cross’s television assets ranges between $19 million and $24 million. This valuation reflects a multiple of approximately 4 to 5 times proforma FY25 EBITDA, underscoring the company’s disciplined approach to asset monetization.
Audio Revenue Growth and Financial Discipline
Southern Cross’s FY25 audio revenues increased by about 5%, buoyed by steady market share gains and a notable boost from Federal Election advertising in April. Despite a slowdown in the advertising market towards the end of the fiscal year, the company’s above-market growth highlights the effectiveness of its strategy to engage the coveted 25 to 54 age demographic through both broadcast and digital platforms.
Looking ahead, audio revenue bookings for July and August 2025 are pacing in line with FY25’s growth, suggesting sustained momentum. Southern Cross has also demonstrated strong financial discipline, reducing net debt from $107.5 million in June 2024 to approximately $68 million by June 2025. The leverage ratio is expected to fall below 1.3 times, better than prior guidance, enabling the Board to resume dividend payments with a final FY25 dividend.
Cost Control and Capital Expenditure Outlook
The company reconfirmed its FY25 guidance, projecting non-revenue related costs to be around $265 million, slightly below the previous year’s $270 million. This cost base is expected to hold steady into FY26, supported by ongoing efficiency initiatives. Capital expenditure is forecast to remain under $10 million, reflecting a leaner operational model focused on audio growth rather than capital-intensive television assets.
Board Succession Signals Governance Renewal
In governance news, Director Carole Campbell has announced her retirement effective August 31, 2025. Campbell has been a valued member of the Board since 2020, notably chairing the Audit & Risk Committee. The Board is initiating an external search to identify a successor ahead of the upcoming AGM, signaling a period of renewal as the company transitions fully into its audio-centric future.
Southern Cross Austereo, the parent company, continues to leverage its strong portfolio of over 100 radio stations and the LiSTNR digital audio platform, which boasts more than 2.2 million signed-in users and reaches an estimated eight million listeners monthly. This digital and broadcast synergy positions Southern Cross well to capitalize on evolving consumer audio habits.
Bottom Line?
With television now behind it, Southern Cross Media’s future hinges on sustaining audio growth and disciplined financial management.
Questions in the middle?
- How will Southern Cross sustain audio revenue growth amid evolving digital competition?
- What impact will the board succession have on strategic direction and governance?
- How might the company leverage the LiSTNR platform to deepen audience engagement and monetization?