Southern Cross Media Group (SXL) H2 2025 earnings summary

Executive summary

• Achieved strong FY 2025 results with revenue up 5% to $421.9 million, EBITDA up 34.4% to $71.1 million, and net profit after tax rising to $15.1 million, driven by digital transformation and operational efficiency.

• Completed transition to a digitally focused audio company, with LiSTNR achieving positive EBITDA of $2.0 million and becoming a key growth engine.

• Exited regional Television, simplifying the business and enabling further cost reductions, with TV divestment finalized and proceeds expected between $19–$24 million.

• Maintained dominance in the 25–54 Metro Radio demographic and expanded digital audience to 2.4 million users, with LISTNR reaching a peak audience of 10 million monthly.

• Achieved sustainable cost reductions and capex discipline, supporting improved cashflows and reduced net debt by $40 million to $67.6 million.

Financial highlights

• Revenue from continuing operations (audio) was $421.9 million, up 5% year-over-year.

• EBITDA rose 34.4% to $71.1 million, with margin improving to 16.9%; net profit after tax increased to $15.1 million, up $10.6 million.

• Digital Audio revenue grew 28.8% to $45.1 million, with Digital Audio EBITDA at $2.0 million, a $12.9 million improvement.

• Broadcast radio revenue increased 2.8% to $376.8 million, with Metro Radio revenue share up to 28.3%.

• Free cash flow rose to $52.1 million, up $31.1 million, and net debt reduced by $39.9 million to $67.6 million.

Outlook and guidance

• FY 2026 revenue forecast between $435 million and $440 million; underlying EBITDA expected between $78 million and $83 million.

• Digital Audio revenue growth to continue at double-digit rates; CapEx to remain at or below $10 million.

• Leverage ratio to remain below 1x; dividend payout targeted at 65%-85% of underlying net profit.

• Non-revenue related costs forecast to remain below $270 million.