Southern Cross Media wins market share across radio, print and television
The first profit result after the media group’s merger with Seven West Media was led by the radio division, which increased operating profits 28 per cent.
Southern Cross Media — the owner of The Nightly, the Seven Network, The West Australian, Triple M and LiSTNR — defied a tough advertising market to win market share across radio, print and television in its first results after merging with Seven West Media last month.
The radio division led the first-half result with a 28 per cent increase in operating profits, a 1.2 per cent cut in underlying expenses and a 14 per cent increase in the audiences for LiSTNR, one of the leading apps for podcasts and radio shows.
The Perth-based publishing division also reported strong momentum, including a 25 per cent increase in audiences for The Nightly, 57 million page views for The West and its other newspapers, which were read by 20 per cent of West Australians at least once a week - the widest reach of any State.
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By continuing you agree to our Terms and Privacy Policy.Seven’s television audience increased 3.4 per cent to its highest level, driven by the popularity of the AFL grand final and the Ashes cricket tests against England and news broadcasts, including coverage of the Bondi attack.
Merger savings
The company limited its revenue fall to 1.5 per cent in the six months to the end of December 31 in what interim executive chairman Heith Mackay-Cruise called a “frustrating” economic and advertising market.
Mr Mackay-Cruise said the company plans savings from the merger of $30 million, which will be delivered next financial year.
“The strategic intent of bringing these two businesses together, to create a multi-media platform offering - that still holds true today,” he said on Tuesday.
“The key now is accelerating the delivery of that strategy and positioning our group to more quickly realise the benefits of our merger and that culminated in changes to the leadership team as announced last night.”
On Monday, the media company removed chief executive Jeff Howard, who came from the television business, and added the Seven network to radio head John Kelly’s responsibilities on an acting basis.
Maryna Fewster remained chief executive of the publishing business, West Australian Newspapers, which includes The Nightly. They report to Mr Mackay-Cruise.
Investing in growth
While cutting costs in response to the advertising market, Mr Mackay-Cruise said the company would “invest in growth platforms that underpin long-term value for our shareholders”. He singled out The Nightly, which launched in 2024, and he said was one of “our core digital offerings” with the 7Plus online TV service and LiSTNR.
The company has declared the five-year-old LiSTNR app a success. The service was built to grow the radio business as people shifted from traditional radios to listening online and to podcasts. Other media companies and entertainers now use LiSTNR to reach listeners.
“Revenue is growing, costs are under control and we are not spending much on capex,” Mr Kelly said.
Across the company, net earnings fell 16.5 per cent to $34.7m. The figures were reported on a pro forma basis, which means they were calculated based on the combined results of the previously separate businesses.
Media mogul Kerry Stokes retired as chairman of the company last week but son Ryan Stokes remains on its board.
