The Southern Cross Media Group Ltd (ASX: SXL) share price is up 5.53% today to $2.12 after the company announced an agreement with Network 10.
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Southern Cross Media share price higher on broadcast agreement
Southern Cross Media announced a new regional television affiliation agreement to broadcast channels 10, 10 Bold, 10 Peach and 10 Shake into its regional Queensland, Southern NSW and regional Victoria markets.
The new agreement will begin 1 July 2021 for a term of two years.
The arrangement will broadcast Network 10's highly successful television programs including MasterChef Australia, Australian Survivor, The Bachelor Australia, The Masked Singer, The Project, live ALeague, Westfield W-League, as well as Socceroos, Matildas and FFA Cup matches.
Southern Cross Media says its sales team have a track record of converting ratings to revenue and look forward to generating strong commercial returns for both parties.
Television revenue update
Southern Cross Media advises that its television revenue booked to date for Q122 is in line with its internal forecasts and ahead of its prior year performance.
An improvement in year-on-year television revenue has been led by a recovery in the national advertising market and improving local investment across all regions.
Southern Cross Media said that this agreement will enable it to optimise the strategic and commercial position of its television business in the evolving free-to-air television market.
The company said it expects television earnings under the Network 10 affiliation to be neutral, compared to the current Nine affiliation, which is expected to expire on 30 June 2021.
Southern Cross Media share price in 2021
It's been a choppy year for the Southern Media share price.
A key catalyst for its underperformance was on 12 March, when Nine Entertainment Co Holdings Ltd (ASX: NEC) said it would not extend its regional affiliation agreement. The company's shares tanked ~10.4% on the day from $2.21 to $1.98.
The 6% rally today to $2.11 in intraday trade has helped push the Southern Cross Media share price to a 4-month high, but it is still down about 2.30% year-to-date.
