Southern Cross Media reports $296m loss after writing down regional assets
The challenged radio and TV group Southern Cross Media has made a $392m write down on its regional assets, with adjusted earnings down 5.4 per cent for the year to $187.8m.
However, excluding the write down the group reported a profit of $79.7m, in line with the profit guidance issued in May and down from the $89m profit reported last year.
The fall has come as ratings for the groups radio and TV assets have plummeted, with the Today Network facing severe challenges in Sydney and the regional stations carrying Network Ten programming also struggling to attract viewers.
Radio revenue shares dropped to their lowest level in two years to 29.8 per cent in the final quarter of the year, with the company averaging between 33 per cent and 35 per cent of the market in the two years before that. Both national and local ad revenues for radio dropped to their lowest in four years as well, down to $162.2m nationally, and $67.4m regionally.
The TV side of Southern Cross Media’s business will remain plagued with issues whilst it has an affiliate deal with Ch10 and there’s nothing they can do about it as they have no influence over the programming.. Not a good position to be really.