Southern Cross Media Group (SXL) H2 2024 earnings summary

Executive summary

• FY24 revenue declined 1.0% to $499.4m, with digital growth offset by declines in broadcast radio and TV.

• Underlying EBITDA fell 14.3% to $66.2m; underlying NPAT dropped 49.2% to $11.2m.

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

• LISTNR digital audio segment reached EBITDA profitability in Q4 FY24.

• Capex reduced to $15.8m, completing major digital transformation investments.

Financial highlights

• Digital revenue grew 42% to $35.0m; broadcast radio revenue declined 1.6% to $366.6m; TV revenue fell 8.7% to $97.5m.

• Non-revenue related costs rose 2.5% to $308.4m, below guidance.

• Free cash flow was $21.0m, down from $36.4m; net debt increased to $107.5m.

• No final dividend declared for FY24; interim dividend was 1.0cps.

Outlook and guidance

• Q1 FY25 audio revenues pacing ahead of prior year; digital audio revenue momentum continues.

• FY25 capex to reduce to ~$10m; NRR costs to be below FY24 level.

• Leverage expected below 1.5x; LISTNR expected to be cashflow positive in FY25.

• TV asset divestment to be actively progressed; dividends to remain at lower end of policy range.