Southern Cross Media Group Limited (ASX: SXL) today announced its financial results for the financial year ending 30 June 2026 (FY26), highlighting a business reset amidst challenging market conditions. Southern Cross Media Group operates a multi-platform media business across broadcast television, audio, publishing and digital, including the Seven Network, 7plus, LiSTNR, and the Hit and Triple M radio networks. For FY26, gross revenue was $1,869.6 million, down 4.5% from FY25. Pro forma EBITDA (including onerous contracts) fell 12.8% to $200.0 million, and Net Profit After Tax (NPAT) declined to $9.9 million.
Performance largely reflected market conditions, reducing revenue by an estimated $125 million, though partly offset by $41 million in share gains and a 3.1% cost reduction. A financial reset delivered $30 million in annualised merger synergies early. An expanded program targeting $145-150 million in annualised savings commenced in Q4 FY26. Borrowings were also refinanced into a single $569 million facility, deferring first maturities until FY30 for enhanced flexibility.
Managing Director and CEO Rohan Lund noted difficult trading conditions, especially in television. Share gains and cost discipline helped EBITDA exceed revised guidance despite revenue challenges. Group digital revenue, encompassing 7plus, LiSTNR, and The Nightly, grew 11% to $320 million. Digital growth in audio notably outpaced broadcast revenue decline for the first time. Lund affirmed the company’s strategic focus on content, advertiser audiences, and financial discipline.
Looking ahead, Southern Cross Media Group anticipates continued subdued and volatile advertising market conditions. Its cost program is progressing, with total operating expenses expected to grow below inflation in FY27. Early Q1 FY27 trading indicates flat television revenue year-on-year, low single-digit growth in audio revenue, and stable publishing revenue, partly supported by major sporting events.
