Revenue and profit has slumped at Southern Cross Media as television advertising fades, but the network’s radio business is holding up.
The regional TV player and Austereo radio network operator today reported first half profit was down 24.4% to $34.7 million after revenue fell 7.3% to $307.6 million.
CEO Rhys Holleran says the result reflects challenging conditions in television advertising markets and a reduced metro radio market share.
“In 2015, we are strengthened by the talent line ups in metro radio and are confident that the strategic direction of the company and the focus on debt reduction will put the company in a sound position to improve over this financial year and the next,” he says.
The company is focused on a content-led recovery.
Popular radio announcer and TV comedy actors Hamish (Blake) and Andy (Lee) are returning to national drive radio from July.
Southern Cross runs Today’s Hit Network and Triple M.
Regional radio revenue is stable with a 0.6% increase in the half year.
Costs have been cut 2.2% and debt reduced by $14.8 million to $573.1 million.
The company announced an interim fully franked dividend of 3 cents.
Its shares are trading higher by more than 10% to $1.037.
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