Southern Cross Media’s FY19 result was in line with the broker. Management did not provide guidance but reports early weakness in metro radio markets, which it expects should turn around in September, and lower costs thanks to declining TV advertising revenue.
Overall, the company managed to offset radio market weakness with gains in market share and the balance sheet is respectable, net debt continuing to fall.
Neutral rating retained. Target price steady at $1.25.
Sector: Media.
Target price is $1.25.Current Price is $1.19. Difference: $0.06 – (brackets indicate current price is over target). If SXL meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
