Southern Cross Media Group (SCA)‘s half year audio earnings results to December 31, 2023 were flat, similar to other networks, but with notable positives. LiSTNR is still on target for a breakeven EBITDA run rate in Q4 FY24 and while Metro radio audio revenue was down 2.2%, regional radio and digital audio was up, offsetting the decline.
SCA used the release of the figures to also address their proposed takeover by ARN and Anchorage Capital Partners Pty Ltd saying there still isn’t a binding agreement or any certainty that any ongoing discussions will see it accepted.
Overview of results:
- A strategic cost management review delivered SCA $30 million in annualised savings significantly above the estimated $15 million.
- Audio revenue was just shy of $200 million and flat. Growth of 2.0% in Regional Radio and 27% in Digital Audio offset a decline of 2.2% in Metro Radio.
- LiSTNR’s audience has grown to over 8 million with the number of users signed up to the platform rising 60% year-on-year to 1.8 million. It has strong revenue momentum (30% CAGR) and remains on target to contribute positively to EBITDA in FY25.
SCA CEO, John Kelly, said:
“SCA maintained and expanded monetisable audiences to record levels in our core radio and digital audio markets during the period. Importantly, our national leadership in the core buying demographics of men and women aged 25 to 54 provides our sales teams with a platform for growth in the second half and beyond.
LiSTNR’s monetisable podcast audience network of around 7.4 million monthly listeners is the largest in the Australian Podcast Ranker. Together with strong growth in our streaming audiences, this continues to drive consideration by media buyers and programmatic advertisers. Digital audio revenue of $15.6 million was an impressive 27% higher than in the prior corresponding period. Coupled with active cost reduction and increased listening hours, this positive revenue momentum means LiSTNR is on target to reach a breakeven EBITDA run rate during the fourth quarter of FY24 and to contribute positively to EBITDA from FY25.
Our strategic cost management review has delivered significant cash savings, setting us up for improved results in the second half of this year and future years. And completion of our major digitisation investment cycle is enabling teams across all parts of our network to generate further savings and open revenue opportunities by optimising business operations and workflows.
“SCA teams around the country remain focused, committed, and passionate about our strategy, operating momentum, and outlook.”