Market provides a tepid goodbye as Kerry Stokes steps away from Seven-SCA
Today was Kerry Stokes’ last as chair of the newly merged business known as Southern Cross Media. Stokes had been holding the interim chair position after Southern Cross Austereo and Seven West Media came together late last year.
“For more than 30 years I’ve been involved at a direct level with the Seven Network,” Stokes was quoted as saying in an ASX announcement. “I’ve worked with some of the industry’s most gifted and talented people delivering innovative sport, news and entertainment content to Australian audiences.
“The newly merged organisation is an important part of the fabric of the Australian way of life and our people will continue to deliver the best quality outcomes to our customers and our communities.”
Former SCA chair Heith Mackay-Cruise took up the role from Stokes, saying “Kerry’s contribution to the media industry in Australia is unparalleled”.
While the sentiments were warm, the market continued to snub the expanded media company.
Southern Cross Media has struggled on the ASX following the merger, losing more than $100m in total market cap value since the deal was announced. Stokes’ last day would not see that trend turned around, with the stock ending the day down 2.22% and with a total market cap of $318.4m.
The other negatives on the day were Motio, down 12.73%, Nine (-1.83%), and News Corp (-0.34%). Ive, Vinyl, Pureprofile, Gumtree and Aspermont were flat.
The gainers outnumbered the losers, led by SEG up 12.28%. Enero was up 3.51%, Ooh Media up 3.37% and ARN up 2.78%, while GTN edged up 1.92%.
The Index ended a week in which it hit a new low slightly down again (-0.09%) at 421.8.
