Southern Cross Media Group Ltd (ASX: SXL) says its underlying earnings have more than doubled in the first quarter, as it prepares to update the market on its takeover bid for Seven West Media Ltd (ASX: SWM).
In a statement to the ASX on Thursday, Southern Cross said its underlying EBITDA for the first quarter of FY26 would come in at $14 million, up 129% on the same period last year.
Total audio revenue of $105.1 million was up 4.7% year on year, and the company's share of the nation's metropolitan radio markets came in at 29.8%, up 1.8 points.
The company had now delivered 12 consecutive months of market share improvements, it said.
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Business travelling well
Southern Cross Chief Executive Officer John Kelly said the company was performing well:
Southern Cross's positive operating momentum continues into FY26 with our focus on growing and monetizing the audience that matters. We have seen continued improvement in revenue share across both broadcast and digital as our sales teams outperform the broader market.
Mr Kelly said the company was also focused on disciplined cost management, with costs falling 3.4% on the prior period.
The company also reaffirmed its full-year EBITDA guidance of $78 to $83 million.
Takeover details soon to come
Southern Cross also updated the market on its proposed merger with Seven West, saying an independent expert's report had been commissioned and would be released to the market in November.
Southern Cross and Seven West announced the proposed merger, which would create an integrated media company worth more than $400 million, in late September.
Under the proposed merger, Seven West Media shareholders will receive 0.1552 Southern Cross shares for each share they own.
Seven West's key brands are the suite of Seven television channels, as well as newspaper, The West Australian, and free online publication, The Nightly.
Southern Cross' key brands are the Triple M radio network, the Hit network, and the audio streaming service, Listnr.
Opposition to the merger soon arose, however, with Southern Cross receiving a notice under Section 249D of the Corporations Act from Sandon Capital, looking to requisition a shareholder meeting.
That meeting would be held to propose a resolution which would restrict Southern Cross's ability to issue new shares, and hence, as Southern Cross said at the time, "would be inconsistent with the proposed merger''.
Southern Cross said in an announcement to the ASX earlier this month that based on the support it had already received from major shareholders, it was apparent the resolution would not pass.
Southern Cross shares were 3.3% higher on Thursday morning at 85.2 cents.
