Southern Cross Broadcasting lifts profit forecast

Southern Cross Broadcasting has had a good week of trading as shares reached an 18 month high after a positive profit forecast.

Southern Cross now expects to make 30% more profit in the first half of this financial year due to a strengthening advertising market.

While most of the expected profit is likely to come from the group’s television interests, cost containment and the recent changes at 2UE are also expected to contribute to a better bottom line, while healthy ratings at 3AW are also growth positive.

Southern Cross CEO Tony Bell again went on the record as saying the company was interested in acquiring the next new Sydney FM licence if the price is right.

Southern Cross last year suffered a big profit downturn after writing down its $17 million investment in the transmission company ntl, but this year the outlook is much more positive.

Bell believes that talk radio in Sydney and Melbourne will further benefit from the fragmentation of the FM music market when the next new licences are auctioned.

Southern Cross shares closed higher this week, up 49 cents when the profit forecast was announced.

Read the report in Melbourne’s Herald Sun in Paper Clips or use the link below.