Southern Cross Media Group (SXL) Trading update summary

Trading performance and outlook

• FY26 group revenue expected at $1,860–$1,870 million, below previous guidance due to weaker TV market conditions and macroeconomic pressures.

• Underlying FY26 EBITDA forecast at $185–$190 million, down from prior guidance of $200–$220 million.

• Reported EBITDA, including accounting adjustments, expected at $190–$195 million.

• TV audience share increased by 1.1 percentage points year-to-date through May 2026.

• Audio and publishing segments maintain strong audience positions, with HIT and Triple M leading key demographics.

Cost reduction and synergy program

• Major cost reduction program launched, targeting annual run-rate benefits of $145–$150 million.

• 250–300 FTE to leave before 30 June 2026, resulting in a $20 million restructuring charge for FY26.

• Merger synergies have already delivered $30 million in annualized savings, ahead of schedule.

• Program focuses on removing duplication, streamlining processes, and leveraging scale.

• Cost base improvements aim to offset inflation and fund targeted growth investments.

Accounting matters and contract provisions

• Onerous contract provision of $65–$70 million to be recognized for legacy TV content contracts.

• Provision will be non-cash and recognized through purchase price accounting from the SCA/SWM merger.

• Utilization of the provision expected to reduce reported costs by $5 million in FY26 and $30 million in FY27.

• These adjustments do not impact cashflows.

• Further updates on FY26 results and FY27 guidance to be provided in August 2026.