Southern Cross Austereo lowers earning expectations

Fifteen months ago, radio and regional TV provider Southern Cross Austereo posted an impressive 25% increase in profits and a 4.7% rise in revenue.

It expected a large revenue growth for its metro radio stations, which includes the Hit and Triple M networks.

But in May 2017, that has not been the case. SCA has informed the Australian Stock Exchange that earnings expectations are now at $168 million, compared to the previously anticipated $177 million to $183 million.

“Advertising markets remain challenging and short,” SCA said in a brief statement. It blamed the downgrade on less revenue for metropolitan radio stations and revealed figures were down 2.2% between January and April.

“(They) are trading flat for the financial year to date,” SCA said.

The statement continued on to say, “Regional radio markets continue to grow albeit at lower than historical levels. SCA has maintained or grown its commercial share in both sectors.”

Its regional TV division continued to drop. SCA sold its northern NSW regional TV operations to WIN Corporation for $55 million, the first part of $45 million to take effective from May 31, and the remainder by next May.

It is expected that SCA will keep up its pressure on the Federal Government to rush through media ownership laws to protect traditional radio from streaming and digital competition emerging from overseas.