Southern Cross Austereo announces voluntary suspension on ASX as broadcaster assesses ‘impacts of the COVID-19 crisis’
Southern Cross Austereo (SCA), home to 84 stations across the country, including the Triple M and Hit Networks, has entered a voluntary suspension in an effort to accurately gauge the impact of the coronavirus crisis on its business.
Following its trading halt earlier in the week, the commercial radio juggernaut announced to the Australian Securities Exchange (ASX) that trading would be suspended until next Friday (April 3).
“SCA advises that the voluntary suspension is necessary to enable SCA to continue to assess the impacts of the COVID-19 crisis on its business and to make an announcement to inform the market about those impacts and the actions being taken by SCA to address them,” reads the statement, issued Wednesday morning.
Stock in the company has fallen sharply since the turn of the COVID-19 outbreak. On Feb. 20, its shareprice was at $0.86. But as the virus spread, its stock tumbled, hitting 0.165 at the close of trading Monday, well-down on its 12-month high of $1.43. That new low triggered a trading halt at the request of the ASX.
SCA had prepared for tough times. The media giant’s board pulled the trigger on several rounds of redundancies and cutbacks last year, as the advertising and media sector felt the squeeze from the bushfire emergency.
In a weakened advertising market, revenue across metro radio was down 10.2% to $181.4 million in the September quarter, triggering the release of 90 staff by year’s end.
The coronavirus emergency has spooked stock markets around the globe. The ASX rebounded yesterday and in early trading today after a weeks-long downturn, during which time hundreds of billions of dollars has been wiped from the market, including one unprecedented day in early March which saw $140 billion lost.
The Australian dollar now trades at about 59 U.S. cents, presenting another challenge for promoters and content buyers when the epidemic does cool off.
Media company Ooh Media, recognised as Australia’s largest outdoor advertising business, also announced a voluntary suspension on the ASX this week following its trading halt last week.
This article originally appeared on The Industry Observer, which is now part of The Music Network.