Southern Cross Media Group (SXL) H1 2026 earnings summary

Executive summary

• Completed merger with Seven West Media, creating a leading integrated multimedia platform with nationwide TV, audio, digital, and publishing coverage, targeting the 25-54 demographic.

• Management changes and integration initiatives announced to accelerate strategy execution and realize merger benefits, including a new CFO.

• Achieved at least $30 million in targeted cost synergies for FY27, with a focus on scalable advertiser solutions and combined data insights.

• Integration delivering early benefits, especially in cross-promotion, audience growth, and accelerated LISTNR user growth.

• Principal activities focused on audio content creation and monetisation through advertising across broadcast and digital platforms.

Financial highlights

• Pro forma H1 FY26 revenue was $1,008 million, down 1.5% year-over-year; EBITDA was $106.9 million, down 14.5%; NPAT was $34.7 million, down 16.5%.

• SCA Audio segment: revenue up 3.2% to $216.5 million; EBITDA up 17.5% to $28.4 million; underlying EBITDA up 28% to $40.1 million.

• Seven West Media segment: revenue down 2.7% to $792.2 million; EBITDA down 28.7% to $66.9 million; NPAT down 42.2% to $21.9 million.

• Digital audio revenue up 14% to $25.2 million; digital audio EBITDA up to $2.8 million.

• Net debt reduced by $16 million to $338 million; leverage ratio at 1.77x; no interim dividend declared.

Outlook and guidance

• Group targeting FY26 revenue of $1.91–$1.92 billion and total costs of approximately $1.7 billion, down from $1.71 billion in FY25.

• Forecasting FY26 EBITDA of $200–$220 million, compared to $233 million in FY25; audio EBITDA reaffirmed at $78–$83 million.

• Q3 audio revenue expected flat year-over-year, with digital growth offsetting regional radio challenges.

• Q3 TV revenue expected down 2–3% year-over-year, with share flat; TV revenue in January up 3%.

• At least $30 million in new cost-saving initiatives identified for H2 and by FY27.