Southern Cross Austereo, which operates the Triple M and Hit networks, and also has a regional television affiliation with the Nine network, says revenue for the six months to December 31 has fallen by 5.3 per cent to $333.3 million.
Profit has dropped 21% to $38.2 million, according to figures released today in its half year report to the stock exchange.
Earnings dropped to $78.1 million, from $92.6 million a year ago.
The company announced on Tuesday that it had renewed its regional TV agreement with Seven West Media. The affiliation was set to expire on July 1.
Southern Cross sold its Northern NSW TV business to Bruce Gordon’s WIN television network in May last year for $55 million. At the time, Southern cross flagged the sale to impact net profit after tax by $6 million.
Excluding the divestment of the northern NSW TV business, Southern Cross said regional media assets had performed well, with revenues growing by 4.6 per cent.
Costs fell 20 per cent from a year ago to $7.7 million and the company expects expenses to reduce further following its recent refinancing.
The company said group revenues will be up around five per cent for January and February and costs for the full year would be flat on last year.
SOUTHERN CROSS PROFIT FALLS
* Net profit down 21.2pct to $38.2m
* Revenue down 5.3pct to $333.3m
* Fully franked interim dividend of 3.75 cents, unchanged
Beyond comprehension that a large business such as SCA provide excuses for higher staff expenses such as Kennedy/Molloy yet see fit to make chief engineer, Steve Adler redundant.
How can a company such as SCA, based on communication lose decades of experience and leadership that Steve has provided? Terrible shame.