The Southern Cross Media Group Ltd (ASX: SXL) share price is in focus today as the company reported FY26 revenue of $1.87 billion, down 4.5%, while EBITDA (excluding onerous contracts) fell 15.8% to $191.9 million amid tough market conditions.
Image source: Getty Images
What did Southern Cross Media Group report?
- Gross revenue: $1,869.6 million, down 4.5% from FY25
- EBITDA (excluding onerous contracts): $191.9 million, down 15.8%
- Reported NPAT: $9.9 million, down 57.6%
- Digital revenue: $320.3 million, up 10.7%
- Net debt: $362.8 million, up 1.6%
- EBITDA margin: 10.3% (down 1.4 ppt)
What else do investors need to know?
Southern Cross Media Group delivered $30 million of annualised merger synergies a year ahead of schedule and has expanded its cost savings program, targeting $145–$150 million in annualised savings. The company's refinancing efforts also saw SCA and Seven West Media combine borrowings into a new $569 million syndicated facility, with first debt maturities in FY30.
Despite a weaker advertising market contributing to a $125 million revenue hit, the business gained market share in both TV and audio segments. Digital revenue across platforms like 7plus, LiSTNR, and The Nightly saw double-digit growth, and audio digital growth outpaced the decline in broadcast revenue for the first time.
What did Southern Cross Media Group management say?
Managing Director and Chief Executive Officer Rohan Lund said:
These are the first full-year results of our merged business. We now reach more than 20 million Australians a month, and each of our three businesses — Television, Audio and Publishing — strengthened its market position during FY26.
Trading conditions were difficult, particularly in television through Q4, and revenue came in below where we expected. Share gains and cost discipline partially offset that, and EBITDA finished above our revised guidance. Digital kept growing while broadcast markets contracted. We delivered our merger synergies a year earlier than expected, expanded our cost program, and refinanced our debt.
While we expect conditions to stay subdued, our focus doesn't change: bring Australians together through content they love and trust, turn that connection into audiences that work for advertisers, and run the business with discipline and unity.
What's next for Southern Cross Media Group?
Looking ahead, management says the advertising market remains volatile but expects operating expenses to grow below inflation, with cost-saving programs tracking to plan for FY27. The company will incur one-off costs linked to major sporting events, including the Commonwealth Games and Rugby League World Cup.
A trading update for the September quarter indicates flat TV revenue, stable publishing, and low single-digit audio growth, as market share gains help offset ongoing challenges in broader advertising demand.
Southern Cross Media Group share price snapshot
Over the past 12 months, Southern Cross Media shares have declined 11%, trailing the All Ordinaries Index (ASX: XAO), which has risen 3% over the same period.
