Southern Cross Media Group Reports Strong Audio Growth as Seven West Media Merger Finalised

About Southern Cross Media Group

Southern Cross Media Group (ASX: SXL) is one of Australia’s most prominent diversified media companies, with assets spanning broadcast television, audio, publishing and digital platforms. Following the completion of its merger with Seven West Media under a Scheme of Arrangement in January 2026, the combined group now operates the Seven Network and 7plus streaming platform, the Hit and Triple M radio networks, LiSTNR, The West Australian, The Sunday Times and several digital publishing brands. The H1 FY26 result reflects a challenging and volatile advertising environment but highlights resilience within audio, improved digital monetisation and early integration benefits from the merger.

Audio Division Performance

SCA’s audio business delivered strong earnings momentum despite a metro radio advertising market that declined 7% during the half. Revenue rose 3.2% year-on-year to $216.5 million, supported by share gains and digital growth.

Metro radio revenue share increased to 29.8%, up 2.3 percentage points, reflecting competitive strength in core metropolitan markets. Broadcast audience share was maintained, with the group winning the key 25–54 demographic for 36 consecutive surveys.

Digital platform LiSTNR continued to gain traction, with audiences increasing 14% year-on-year to 2.5 million signed-up users. Digital EBITDA improved materially to $2.8 million, up from $0.1 million in H1 FY25, and is now cashflow positive.

Underlying expenses were tightly controlled, declining 1.2% to $176.4 million, with non-revenue related costs down 2%. As a result, underlying Audio EBITDA increased 28% to $40 million, while underlying NPAT surged 252% to $12.8 million.

Television and Publishing Performance

Seven’s television business delivered solid audience growth in a contracting advertising market. Total TV audience increased 3.4% (total people) and 4.7% in the 25–54 demographic, underpinned by 55% year-on-year growth in 7plus streaming. Daily active users on 7plus increased 26% to 551,000, while digital publishing audiences rose 27% year-on-year.

Seven achieved a total TV revenue share of 44.1% for the half – a record for any half-year period – representing a 2.7-point increase year-on-year.

Total television revenue declined 2.1% to $712 million, reflecting softer advertising demand, although total TV advertising revenue fell just 0.8% compared with a broader market decline of 10.1%. Operating expenses rose 1.6% to $645 million, below AGM guidance of approximately 3% growth. Underlying EBITDA was $67 million, down 27%, consistent with prior guidance.

Pro Forma Group Performance

On a pro forma basis, assuming the merger had been in place for the entirety of both comparative periods, group revenue for H1 FY26 was $1.008 billion, down 1.5% on H1 FY25. Pro forma expenses were $901.2 million, up 0.3%, reflecting disciplined cost management across the combined entity.

Pro forma EBITDA was $106.9 million, down 14.5% year-on-year amid advertising volatility. Net debt was reduced by $16 million to $338 million, with a leverage ratio of 1.77 times.

No interim dividend was declared, with management prioritising debt reduction following the merger.

Integration Synergies and Strategic Benefits

Chairman Heith Mackay-Cruise highlighted early integration benefits, particularly through cross-promotion between television and audio assets.

LiSTNR’s signed-up user base increased by approximately 70,000 between mid-December and mid-January, roughly three times the pre-merger run rate, supported by integration into Seven’s premium sport coverage.

The group has identified regional market opportunities where client overlap between television and audio creates new revenue streams. Management is targeting cost synergies of at least $30 million, to be delivered within FY27. Early synergy delivery has commenced through corporate savings and regional office consolidation.

Outlook and FY26 Guidance

In January, audio revenue rose 4% year-on-year, with strong digital growth offsetting softness in the regional radio market. Audio revenue for Q3 is expected to be broadly flat.

Total TV advertising revenue in January increased 3%, driven by premium sport and digital growth, though Q3 TV revenue is expected to decline 2%–3% year-on-year while holding market share.

For FY26, the group is targeting pro forma revenue of $1.91–$1.92 billion and pro forma costs of approximately $1.70 billion, lower than FY25. Audio EBITDA guidance remains $78–$83 million, and group pro forma EBITDA is expected to be $200–$220 million compared with $233 million in FY25.

Outlook and FY26 Guidance

SCA’s H1 FY26 result demonstrates resilience in audio, disciplined cost management and early strategic benefits from its merger with Seven West Media. While advertising conditions remain challenging, market share gains, digital growth and targeted synergies provide a pathway to improved scale and operating leverage.

With national reach across television, audio, publishing and digital platforms, the merged group is positioning itself to extract integration benefits, enhance cross-platform monetisation and strengthen long-term shareholder value in an evolving Australian media landscape.