Southern Cross Media Group (SXL) H1 2025 earnings summary

Executive summary

• Delivered strong half-year FY 2025 results with 5.3% revenue growth to $209.7m, driven by audio and digital audio performance and transformation strategy execution.

• EBITDA excluding significant items increased 46.9% to $31.2m, reflecting cost discipline and higher net revenues.

• Completed or advanced divestment of TV assets, focusing the business on audio and digital growth.

• Maintained leadership in metro 25-54 demographic and regional radio, with LiSTNR surpassing 2 million users and leading digital audio revenue growth.

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

Financial highlights

• Audio revenue up 5.3% year-over-year to $209.7m; EBITDA up 46.9% to $31.2m.

• Net profit after tax from continuing operations was $3.6m, reversing a prior year loss; total NPAT at $3.2m including discontinued operations.

• Digital audio revenue grew 42% to $22.1m, with EBITDA improving by $8.7m to breakeven or $0.1m.

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

• Free cash flow rose to $24.4m, up $13.9m year-over-year.

Outlook and guidance

• Audio revenues expected to be 6% ahead year-over-year for Q3 FY 2025; double-digit digital audio growth expected into FY 2026.

• Non-revenue-related costs forecast below $270m for FY 2025 and FY 2026; CapEx below $10m.

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

• New $160m revolving debt facility provides financial flexibility, with $42m undrawn.