SCA in talks to sell television stations as profit slumps

Chris Pash
By Chris Pash | 29 August 2024
 
Credit: Fran Jacquier via Unsplash

SCA is putting its television assets up for sale as the broadcaster posts a 1% fall in revenue to $499.4 million for the year to June.

The company posted a loss, with net profit after tax at -$224.6 million. Underlying profit was down by almost half to $11.2 million. 

SCA recognised a non-cash impairment charge of $326.1 million ($228.3 million after tax) against the value of broadcast licences in the broadcast radio cash generating unit.

Broadcast radio revenue fell 1.6% to $366.6 million. Digital revenue grew 42.2% to $35 million. 

Television revenue fell 8.7% to $97.5 million.

CEO John Kelly said the company has re-started a strategic review of "non-core" regional television assets.

The company was in "active negotiations with several parties" with an interest in acquiring those assets.

"The sale of our regional television assets will enable us to focus on optimising our leading radio and digital audio assets, led by LiSTNR, HIT and Triple M," Kelly said. 

SCA's core strategic focus is to be All About Audio and to be the most profitable local Audio company in Australia led by LiSTNR, HIT Network and Triple M Network. 

The company is keeping a right grip on spending, with further "meaningful and permanent cost reductions" in the current financial year.

Audio revenues in the current September quarter are pacing ahead of the same three months last year, although the market remains short.

The company says its performance improved in the June half, driven by and improving share of metro radio advertising revenue, strong growth in digital audio revenues and cost discipline.

“SCA maintained dominant audience shares in our core metro and regional radio and digital audio markets," said Kelly.

"Despite challenging advertising market conditions, our improved financial performance in the second half has provided strong momentum into the new financial year.

"Our national leadership in the core buying demographics for men and women aged 25-54 provides our sales teams with a strong platform for continued growth. 

“In the fast-growing digital audio sector, LiSTNR has reached over two million signed-in and addressable users, with around one million of these interacting with LiSTNR monthly.

"This is testament not only to the range of engaging content on LiSTNR but also to the excellent and personalised user experience delivered by LiSTNR."

Non-revenue-related costs were kept to $308.4 million (excluding non-recurring items), below guidance of $310 million.

Year to June 2024:

SCA june 2024 full year numbers from announcement august

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