SEG Delivers $10.5m Underlying EBITDA, Returns $8.3m to Shareholders
Sports Entertainment Group Limited has reported a strong FY25 with a $22.9 million statutory profit and a 62% rise in underlying EBITDA, driven by organic growth and strategic divestments. The company also declared dividends and anticipates continued double-digit EBITDA growth in FY26.
- Statutory profit after tax of $22.9 million for FY25
- Underlying EBITDA of $10.5 million, up 62% organically
- Net cash position of $1.3 million and $8.5 million positive operating cash flow
- Dividends totaling 3.0 cents per share returned to shareholders
- Strategic divestment of Perth Wildcats expected to generate $19 million proceeds over FY26-FY28
Strong Financial Performance Amid Strategic Transition
Sports Entertainment Group Limited (SEG) has delivered a robust financial performance for the year ended 30 June 2025, reporting a statutory profit after tax of $22.9 million. This marks a significant turnaround supported by a 62% organic increase in underlying EBITDA to $10.5 million. The company’s ability to convert revenue growth directly into improved earnings reflects successful margin enhancements and cost efficiencies.
Revenue rose modestly by $2.4 million, but the real story lies in the operational leverage SEG has achieved following years of investment and consolidation. Since merging Crocmedia and Pacific Star Network, the group has built a substantial asset base and audience reach, positioning itself well to capitalise on media consolidation trends in Australia.
Strategic Initiatives Fuel Growth Prospects
SEG’s FY25 was marked by several strategic milestones. The company secured production rights for Channel 7’s flagship football shows, "Agenda Setters" and "Unfiltered," and commissioned a second TV studio with live audience capacity, enhancing its content creation capabilities. Additionally, SEG won a five-year contract to produce Harness Racing Victoria broadcasts, expanding its sports media footprint.
On the digital front, SEG launched an upgraded website and app featuring enhanced tipping and wagering platforms, aiming to deepen user engagement and monetisation. These initiatives, combined with a reset cost base and the divestment of the Perth Wildcats, have strengthened the company’s financial position and operational focus.
Capital Management and Shareholder Returns
The divestment of the Perth Wildcats not only reduced debt but also enabled SEG to return capital to shareholders. The group declared a fully franked final dividend of 1.0 cent per share payable in September 2025, adding to the 2.0 cents per share special dividend paid in October 2024. Together, these dividends represent $8.3 million returned to shareholders over the past year, signalling confidence in the company’s cash flow generation.
SEG ended FY25 with a net cash position of $1.3 million and $15 million in cash against $13.7 million in senior bank debt. Operating cash flow was a healthy $8.5 million, underpinning the company’s ability to fund growth and shareholder returns sustainably.
Outlook, Sustained Double-Digit Growth Expected
Looking ahead, SEG expects to continue its momentum with guidance for approximately 30% EBITDA growth in FY26. The company’s diversified media assets, strengthened production capabilities, and digital platform enhancements provide a solid foundation for this forecast. Moreover, proceeds from the Perth Wildcats sale, estimated at a minimum of $19 million over FY26 to FY28, will further bolster financial flexibility.
While the company has exited its New Zealand sports teams to streamline operations, the focus remains firmly on leveraging scale and reach across Australian markets. SEG’s management emphasises ongoing investment in opportunities aligned with its strategic vision, suggesting a proactive approach to growth and consolidation in the sports media sector.
Bottom Line?
SEG’s FY25 results mark a pivotal step in its evolution, setting the stage for sustained growth and shareholder value creation in a competitive media landscape.
Questions in the middle?
- How will SEG deploy proceeds from the Perth Wildcats sale to maximise growth?
- What impact will intensified media consolidation have on SEG’s competitive positioning?
- Can SEG sustain its margin improvements amid expanding production and digital initiatives?
