Southern Cross Media doubles down on audio as it sells TV assets

Southern Cross Media Group Limited is making good on its 'All About Audio' strategy selling off its remaining regional TV assets to Seven West Media.

The sale, which includes TV licences in Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin, and Remote, Central and Eastern Australia, is set to be completed by 30 June 2025.

Southern Cross Media (SCM) will receive $3.75 million in upfront consideration, similar to its previously proposed deal with Australian Digital Holdings (ADH), which fell through due to unmet conditions.

The full proceeds from the deal are expected to fall between $19 million and $24 million, representing an EBITDA multiple of 4-5 times based on FY25 estimates.

This divestment is part of a broader strategic transformation for SCM, which is placing increased emphasis on its digital audio assets.

In an interview earlier this year, SCA CEO John Kelly hinted at the impending sale, saying it will allow the company to focus entirely on audio while strengthening its hyper-local approach to radio broadcasting.

John Kelly SCA

Southern Cross Media's future in audio

The move follows the release of SCA's financial results for the first half of FY25, which saw revenue rise 5.3% to $209.7 million and EBITDA up 24.6% to $24.1 million. Net profit after tax (NPAT), including discontinued operations, reached $3.2 million, reflecting a 5.5% increase year-on-year.

The company put down the positive momentum to its continued strength in metro and regional radio, expanding digital audio revenues, and disciplined cost management.

At the time Kelly again highlighted the company's decisive shift towards digital and audio.

With its streaming platform LiSTNR now profitable and digital audio revenues up 48%, the sale once again reinforces SCA as Australia’s fastest-growing audio company.

The company's shift is a direct response to the evolving media landscape, where audio consumption is on the rise and increasingly driving revenue growth.

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