Shares in Southern Cross Media have plummeted by over 7 per cent following the unexpected resignation of chief executive Jeff Howard and the announcement of significant cost-cutting measures. Howard’s departure occurred less than two months after the completion of a merger between Seven West Media and Southern Cross in January. The combined entity incorporates Seven’s television operations, The West Australian, the Triple M and Hit radio networks, the Listnr audio application, and numerous regional radio stations. Southern Cross Media operates radio and television broadcasting networks across Australia. The company delivers entertainment and news content to a wide audience.
Southern Cross reported a 1.5 per cent decrease in revenue, amounting to $1.1 billion for the six-month period ending December 31. Profits also experienced a downturn, declining by 16.5 per cent to $34.7 million. UBS analyst Ailsa Lei noted that the first-half results surpassed UBS’s expectations, with revenue reaching $1.01 billion and EBITDA at $107 million, driven by robust top-line growth.
UBS anticipates a pro forma EBITDA of $200–$220 million for FY26, supported by consistent television performance and stable revenue from the audio sector. Despite the positive outlook from UBS, the market reacted negatively to the news of cost reductions and the change in leadership.
At the time of writing, Southern Cross Media shares were down 7.2 per cent, reflecting investor concern over the immediate impact of the announced changes and the uncertainty surrounding the company’s future direction.
