How SEG Doubled Profit and Advanced Perth Wildcats Sale in FY25

• Revenue up 2.2% to $110.24 million
• Underlying EBITDA pre-AASB 16 up 61.3% to $10.53 million
• Net profit after tax attributable to members more than doubled to $22.94 million
• Partial sale of Perth Wildcats completed with further stages planned through 2028
• Acquisition of RSN broadcasting, audio and digital assets announced

Financial Performance Highlights

Sports Entertainment Group Limited (SEG) has delivered a robust financial performance for the year ended 30 June 2025, reporting a modest 2.2% increase in revenue to $110.24 million. More notably, the company’s underlying EBITDA from continuing operations, before the impact of AASB 16 lease accounting, surged 61.3% to $10.53 million. This strong earnings growth was underpinned by improved margins and disciplined cost management, reflecting the benefits of the group’s scale and operational efficiencies.

Net profit after tax attributable to members more than doubled, reaching $22.94 million, a significant turnaround from the prior year. This jump was supported by gains from the staged sale of the Perth Wildcats basketball team and other one-off items, alongside solid underlying business performance.

Strategic Asset Sales and Acquisitions

During the year, SEG advanced its strategic repositioning by completing the first stage of the staged sale of its Perth Wildcats shares, disposing of 52.5% for $21 million in August 2024. The transaction reclassified the Wildcats as an equity-accounted associate, with further stages planned through to 2028, expected to generate additional proceeds of at least $19 million. This divestment aligns with SEG’s focus on capital recycling and strengthening its balance sheet.

Complementing this, SEG announced in July 2025 the acquisition of RSN’s broadcasting, audio, and digital assets for $3.25 million, payable over three years. This acquisition is anticipated to be EBITDA positive from the first year, with cost synergies expected to enhance profitability. The move expands SEG’s footprint in audio and digital media, reinforcing its multi-platform content strategy.

Balance Sheet and Cash Flow Strength

SEG’s balance sheet showed marked improvement, with net cash on hand rising to $14.96 million and senior bank debt reduced to $13.7 million, down from $24 million the previous year. Operating cash flow was strong at $8.47 million, reflecting the company’s emphasis on cash generation and financial discipline. The group’s debt facilities were extended to March 2027, providing financial flexibility to support ongoing growth initiatives.

Dividend and Shareholder Returns

Reflecting its improved financial position and confidence in future cash flows, SEG declared a fully franked final dividend of 1 cent per share, payable in September 2025. This follows a special dividend of 2 cents paid in October 2024, cumulatively returning $8.32 million to shareholders over the past 12 months. The initiation of dividends marks a milestone as the group transitions from investment phase to delivering shareholder returns.

Risks and Outlook

SEG acknowledges several risks that could impact future performance, including slower-than-expected revenue growth in key NSW and QLD media markets, the fixed nature of operating costs, and broader economic conditions affecting advertising spend. Cybersecurity threats and regulatory changes, particularly in advertising standards, also remain areas of focus. The company’s diversified revenue streams and multi-platform approach provide some mitigation against these risks.

Notably, the group recorded a $4.95 million impairment on its publishing business, reflecting ongoing challenges in that segment. However, management remains optimistic about the underlying cash flow generation and strategic direction.

With the RSN acquisition set to complete shortly and further proceeds expected from the Perth Wildcats sale, SEG is positioned to leverage its scale and content assets to drive margin accretion and sustainable growth.

Bottom Line?

SEG’s FY25 results showcase a turning point with strong profit growth and strategic asset moves setting the stage for future expansion and shareholder returns.

Questions in the middle?

• How will the RSN acquisition integrate operationally and financially into SEG’s existing media portfolio?
• What are the growth prospects and margin outlook for the NSW and QLD media segments amid flat audience trends?
• How will SEG manage the fixed cost base to sustain EBITDA growth if advertising markets soften?