Southern Cross Austereo has provided shareholders with a trading update warning of a downturn in revenue following an 8.5% decrease in the September quarter figures when compared to the prior year.
All commercial radio dropped by 10.2% in the same period and SCA, the owner of the Triple M and Hit Networks, says EBITDA for the first half of this financial year is now expected to be in the range of $60M to $68M.
In the 6 months to December 2018 SCA earnings were $82M, and the news of the expected downturn this year saw an immediate slump in the companies share price yesterday, dropping 24 per cent to 88 cents before recovering slightly to be down by 22 per cent at 94 cents at the close of trade.
SCA’s Chief Financial Officer, Nick McKechnie, says “SCA believes that it has consolidated advertising share gains achieved in the prior corresponding period and is now trading in line with media markets.
“Advertising markets remain short and volatile and SCA will continue to focus on maximising its market share while maintaining strict cost control across all divisions.”
SCA’s share price has contiunued its dip this morning, down to 88 cents at midday.
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