SCA’s profit slips as execs get a pay rise
This article has been updated on 18 August.
Southern Cross Austereo (SCA) has delivered a 12.2% dip in profit to $77.2 million during the 2023 financial year. However, the company’s executives have taken home a decent pay rise.
In its full-year earnings call this morning, the owner of Triple M and Hit networks posted $505.6 million in revenue for the 2023 financial year, a 3.7% decrease from the previous corresponding period.
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SCA’s share price dropped 8.28% to $0.83 in the initial hours after the market opened.
In the company’s remuneration report, SCA’s former CEO Grant Blackley, who exited the business on 30 June, took home $2.43 million in the 2023 financial year compared to $1.69 million in 2022.
Blackley’s successor John Kelly was paid $926,587 as COO in the 2023 financial year compared to $787,462 in 2022, and stepped into the CEO role in the new financial year. SCA said the COO role has not been replaced.
John Kelly
On different fronts of the group’s operations, SCA’s broadcast radio brought in the most revenue, but its digital audio (LiSTNR) segment had the biggest growth.
Overall radio revenue declined by 1.2% to $372.8 million. The company’s metro radio commercial revenue share increased to 27.2% (up 0.6%).
The business’s favourite child, LiSTNR, witnessed a 36.2% increase in revenue to $21.3 million. The newly minted CEO, Kelly, said the service now boasts over 1.5 million signed-in users and 8 million monthly users.
“This is increasing consideration by media buyers, as demonstrated by growth of 36.2% in digital audio revenues. LiSTNR is on target to reach an EBITDA breakeven run rate during the fourth quarter of FY24 – a year ahead of previous guidance,” he said.
SCA reiterated that it’s “all about audio” in its investor presentation, as its television segment saw a 37.2% contraction in EBITDA to $18.7 million and 14.5% decrease in revenue to $107.8 million.
The company recently renewed its regional affiliation agreement with Ten for another six months until the end of the calendar year.
“Regional television again weighed on our results during the year. We are working constructively with our principal programming partner, Network 10, to enhance our collective offering to national advertisers and sponsors and to generate more reliable returns for our shareholders,” said Kelly.
“Our always-on cost disciplines saw group expenses overall reducing by 2% last year with a 1.3% or $3.8m reduction in non-revenue-related expenses. We have commenced a strategic cost review targeting removal of $12M to $15M in annualised costs, with $5-$7M of that being in FY24.”
The company will pay a fully franked dividend of 2.2 cents per share.
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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