Perth Wildcats Exit Raises Questions as SEG’s Profit Per Share Declines Despite EBITDA Surge
Sports Entertainment Group Limited reported a robust half-year ending December 2025, with revenues climbing 28% and underlying EBITDA soaring 78%, driven by strong media and complementary services growth. The company also finalised its Perth Wildcats divestment, boosting cash reserves.
- Revenue up 28% to $73.7 million
- Underlying EBITDA rises 78% to $11.9 million
- Adjusted underlying EBITDA up 94% excluding one-off costs
- Completed sale of remaining Perth Wildcats shares, receiving $12 million
- Declared interim dividend including special dividend from Wildcats sale
Strong Financial Performance
Sports Entertainment Group Limited (SEG) has delivered a compelling half-year financial performance for the period ended 31 December 2025. The company’s revenue surged 28% to $73.7 million, while underlying EBITDA jumped 78% to $11.9 million. When excluding one-off restructuring and acquisition-related costs, adjusted underlying EBITDA nearly doubled, rising 94% to $9.7 million. This growth underscores the effectiveness of SEG’s strategic focus on sports media and entertainment.
Segment Growth Drivers
The uplift was broad-based, with the Complementary Services segment; particularly TV production and events; showing material growth. TV production revenue increased by 61%, contributing an additional $0.8 million in EBITDA, while events revenue grew 32%, adding $1.3 million in EBITDA. The Media segment also expanded, buoyed by live sports content including AFL and NRL finals, Trade Radio, and Ashes cricket, with revenue rising 11%. SEG’s ‘Whole of Sport’ strategy appears to be paying off, as media revenue growth translated directly into margin expansion.
Balance Sheet and Cash Flow Strength
SEG’s balance sheet reflects prudent financial management, with senior bank debt reduced to $11.4 million and cash on hand rising to $26.7 million at the half-year mark. Operating cash flow was strong at $11.2 million. Notably, the company received a further $12 million in early January 2026 from the completion of the Perth Wildcats sale, marking the disposal of its final 30.6% ownership stake. This divestment not only bolstered liquidity but also allowed SEG to focus on its core media and complementary services businesses.
Strategic Acquisitions and Divestments
In September 2025, SEG acquired the brand and audio & digital broadcasting assets of 3UZ Pty Ltd (RSN), investing $3.25 million to expand into the racing vertical; a sector adjacent to its core sports media operations. This acquisition contributed nearly $0.86 million in revenue during the half-year and signals SEG’s intent to diversify its content offerings. Meanwhile, the Perth Wildcats divestment completed in January 2026 marks a strategic exit from direct sports team ownership, freeing capital for reinvestment.
Dividend and Outlook
The board declared an interim dividend comprising a 1 cent per share ordinary dividend and a 3 cent per share special dividend related to the Perth Wildcats sale, reflecting confidence in ongoing cash generation. While basic earnings per share declined compared to the prior period; impacted by discontinued operations and share issuance; the underlying EBITDA per share more than doubled, highlighting operational improvements. The company continues to meet all debt covenants and operates on a going concern basis, positioning it well for future growth.
Bottom Line?
SEG’s half-year results highlight a successful pivot towards scalable media and complementary services, with the Perth Wildcats sale providing fresh capital to fuel the next phase of growth.
Questions in the middle?
- How will SEG leverage the proceeds from the Perth Wildcats sale to accelerate growth?
- What impact will the 3UZ acquisition have on SEG’s racing content strategy long term?
- Can SEG sustain margin expansion amid competitive pressures in sports media?
