Southern Cross Media Group (SXL) H2 2024 earnings summary

Executive summary

• FY 2024 revenue declined 1% to AUD 499.4 million, with digital growth offset by declines in broadcast radio and TV.

• Underlying EBITDA fell 14.3% to AUD 66.2 million; underlying NPAT dropped 49.2% to AUD 11.2 million.

• A non-cash impairment charge of AUD 228.3 million after tax was recorded for radio licences.

• LiSTNR digital audio segment reached EBITDA profitability in Q4 FY 2024.

• CapEx reduced to AUD 15.8 million, completing major digital transformation investments.

Financial highlights

• Digital audio revenue grew 42% to AUD 35 million; broadcast radio revenue declined 1.6% to AUD 366.6 million; TV revenue fell 8.7% to AUD 97.5 million.

• Non-revenue related costs rose 2.5% to AUD 308.4 million, below guidance.

• Free cash flow was AUD 21 million, down from AUD 36.4 million; net debt increased to AUD 107.5 million.

• No final dividend declared for FY 2024; interim dividend was 1.0cps.

• H2 underlying EBITDA grew 6% at group level and 8% in audio year-on-year.

Outlook and guidance

• Q1 FY 2025 audio revenues are pacing ahead of the prior year, with continued digital audio momentum.

• FY 2025 CapEx forecast at approximately AUD 10 million, with similar levels expected in future years.

• FY 2025 NRR costs expected below FY 2024, with further cost-out initiatives underway.

• Leverage expected below 1.5x by end of FY 2025; LiSTNR expected to be cash flow positive.

• TV asset divestment actively progressing; dividends to remain at the lower end of the payout range.