Southern Cross Media Group (SXL) H2 2026 earnings summary

Executive summary

• FY26 revenue was AUD 1.87 billion, down 4.4–4.5% year-over-year, reflecting tough advertising markets, partially offset by share gains and digital growth.

• EBITDA (including onerous contracts) was AUD 200 million, down 12.8% year-over-year; excluding onerous contracts, EBITDA was AUD 191.9 million, down 15.8%.

• NPAT was AUD 9.9–10 million, down 58%, impacted by lower operating earnings and significant merger and restructuring items.

• Merger with Seven West Media delivered AUD 30 million in synergies ahead of schedule; a cost-out program targeting AUD 145–150 million in annualized savings is underway.

• Digital revenue grew 10.7–11% to AUD 320–320.3 million, with strong growth in 7plus and LiSTNR platforms.

Financial highlights

• Group revenue declined by AUD 86–87 million, mainly due to a AUD 125 million contraction in the advertising market.

• EBITDA before onerous contract provision release was AUD 191.9 million, down 15.8% at a margin of 10.3%.

• Net debt ended at AUD 362.8–363 million, up 1.6% year-over-year; leverage ratio at 1.8x, interest cover at 7.1x.

• Cash flow available for debt servicing was AUD 41 million, down from AUD 86.8 million in FY25, with a cash conversion ratio of 71%.

• Operating costs fell 2.6% to AUD 1.423 billion, driven by merger synergies, spend control, and tax relief.

Outlook and guidance

• FY27 priorities include leveraging trusted content, expanding digital, embedding multi-platform advertiser solutions, and delivering the cost-out program.

• Television revenue is tracking flat year-on-year, with July slightly up; audio and publishing revenues are steady or up low-single digits.

• Total operating expenses expected to grow below inflation; full benefit of cost-out program to be realized in FY28.

• One-off costs anticipated for major sporting events in FY27.

• Advertising market remains short and volatile, with mixed sentiment among consumers and advertisers.