Southern Cross Austereo expects earnings to be down 10 per cent on last year, blames struggling Ten and 2DayFM ratings
Southern Cross Austereo (SCA) has said it expects its earnings to be 10 per cent down on last year’s, blaming poor TV ratings for Network Ten and a slump in the Today network’s listenership following the departure of Kyle Sandilands and Jackie ‘O’ Henderson for Kiis FM at the end of last year.
The company issued an earnings guidance statement on the Australian Securities Exchange (ASX) today which warned its earning would be “substantially under” last year’s $96.1m. It warned earnings would be ten per cent below the like-for-like earnings of $89m following the sale of the Sunshine Coast business.
It adds: “The revised outlook takes into account additional share loss predominately as a result of the challenging Channel 10 television product and metropolitan radio ratings which has led to lower revenue performance combined with a softer advertising market and increased investment in marketing and promotional activities across the metropolitan radio network.”
SCA is the regional affiliate broadcaster for Network Ten, and owns the Today and TripleM radio networks.
And book 3 out tomorrow for radio no improvement in books 1 -2 then just about write off the year. 3 surveys is a trend not a survey bounce.
Very strong words from McLennan today in the AFR re SCA and their problems – not exactly the sort of support they’d be looking at from a partner.