Southern Cross Austereo will outsource all of its radio and television broadcast transmission services to Broadcast Australia.
 
Under the agreement SCA will transfer its transmissions assets to BA who will then manage and service over 500 sites around Australia for an initial term of 15 years.
 
The transition will begin almost immediately and is expected to be completed by March next year.
 
The transaction will result in a non-cash loss of $9.2 million from the sale that will be recorded in the 2019 financial year, but the outsourcing is expected to deliver future cashflow savings to SCA as all future operating costs and capital expenditure for transmission will be the responsibility of BA.
 
Chief technology officer Stephen Haddad, in a statement to the ASX, says “The outsourcing is a logical step for SCA, consistent with the group’s strategy of delivering content and media platforms and moving away from asset intensive activities that can be delivered by specialist service providers.”