The Southern Cross Media Group Ltd (ASX: SXL) share price is down 19% to 93 cents today after the group warned weak media markets would see EBITDA (operating income) come in between $60 million to $68 million over the half-year to December 31 2019.
It also flagged that full year capex is expected to come in $5 million to $7 million lower than the prior year.
Total revenue for the quarter ending September 30 2019 was down 8.5% on the prior corresponding quarter with declines in radio and TV.
The good news is it reported it has “consolidated” market share gains made in the prior corresponding quarter, with the falling revenues a result of weak markets rather than operational performance.
Other traditional media companies such as News Corp (ASX: NWS), Seven West Media Ltd (ASX: SWM) and Nine Entertainment Co Holdings Ltd (ASX: NEC) have also struggled recently on the back of rising competition leading to falling advertising revenues.
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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nine Entertainment Co. Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.