Southern Cross Media Group (SXL) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 rose 5.3% year-over-year to $209.7 million, with EBITDA up 46.9% to $31.2 million and NPAT at $3.6 million, reflecting strong operating momentum and disciplined cost management.

• Digital audio and broadcast radio segments drove growth, with LISTNR achieving profitability and surpassing 2 million users.

• TV segment divestment completed or nearing completion, allowing focus on core audio and digital assets.

• No interim or final dividend declared as focus remains on debt reduction.

Financial highlights

• Group revenue (excluding TV) up 5.3% to $209.7m; EBITDA up 46.9% to $31.2m; NPAT from continuing operations at $3.6m, reversing prior year loss.

• Digital audio revenue grew 42% to $22.1m, with EBITDA improving by $9m year-over-year to breakeven.

• Broadcast radio revenue up 2.2% to $187.6m, with EBITDA margin at 24.4%.

• Net debt reduced to $92.9m, leverage ratio down to 1.58x.

• Operating cash conversion improved to 115.9% from 70.4% in H1 FY24.

Outlook and guidance

• Audio revenues expected to be ~6% ahead year-over-year for Q3 FY25; double-digit digital audio growth forecast into FY26.

• Non-revenue-related costs for FY25 and FY26 forecast below $270m; capex below $10m.

• Further leverage reduction anticipated by June 2025 through improved cash flows.

• LISTNR forecast to remain profitable for FY25.