SEG completes MediaWorks deal to build 5 million-listener trans-Tasman platform

MediaWorks acquisition creates scaled trans-Tasman audio group

Sports Entertainment Group (ASX:SEG) has completed its acquisition of MediaWorks for an enterprise value of NZ$130 million, or approximately A$107.6 million, giving the Australian sports media company control of what it describes as New Zealand's number-one audio business.

The transaction combines SEG's Australian sports audio network with MediaWorks' New Zealand radio, music and entertainment operations. The resulting group reaches more than 5 million listeners across the two markets, with MediaWorks contributing 2.4 million weekly listeners and the rova digital audio platform contributing more than 540,000 monthly active users.

Combined EBITDA rises to A$42.9 million after synergies

SEG's pro forma, unaudited September 2026 last-12-month underlying EBITDA stands at A$37.9 million before identified synergies. Adding approximately A$5 million in annual synergies lifts the reported combined figure to A$42.9 million, up from the previously announced A$41.1 million at 30 June 2026.

The figure comprises A$18.5 million of LTM underlying EBITDA from SEG's Australian business and A$19.4 million from MediaWorks, converted using a 12-month average NZD/AUD exchange rate of 0.833. The company says MediaWorks' EBITDA has recorded consistent monthly growth during the first quarter of FY27, ahead of its traditionally strongest October-to-December quarter.

Debt starts at 1.84 times with tax losses supporting deleveraging

The enlarged group begins with gross debt of A$86 million, cash of A$7 million and net debt of A$79 million. Against the post-synergy EBITDA figure, that produces day-one net leverage of 1.84 times. SEG said it has raised A$15 million in new equity since announcing the acquisition from existing, institutional and retail investors.

Management has outlined a pathway to reduce leverage to approximately 1.2 times within two years, citing expected free cash flow, the realisation of synergies and available New Zealand tax losses. MediaWorks brings NZ$50 million of tax losses, although the timing and extent of their use will affect how quickly the balance sheet improves.

Early trading momentum meets execution risk

SEG forecasts that its Australian business will deliver first-quarter FY27 underlying EBITDA 10% above the prior corresponding period, with the Legends Game, NFL Melbourne Game and AFL and NRL finals described as positive contributors. The company also expects the combined digital proposition to benefit from integration between rova and SEG's SEN digital platform, with a roadmap for rova to reach 800,000 monthly active users by FY30.

Those figures point to a stronger earnings platform, but much of the investment case now rests on delivery rather than announcement. The combined financial information is unaudited, based on management estimates and remains subject to the completion statement process under the sale agreement. The A$5 million synergy target, free-cash-flow generation and 1.2 times leverage objective are also forward-looking, leaving quarterly performance and the pace of integration as the next hard tests.