Broadcaster SCA reported strong growth in audio but overall revenue slipped 1.8% to $519.7 million in the year to June.
SCA recorded underlying EBITDA of $87.9 million, up 2.8%. Underlying net profit after tax was up 38.4% to $27.4 millon.
Audio revenue was 9.2% higher at $392.9 million.
Broadcast radio revenue grew by 9.4% to $182.7 million in metro markets and by 6.4% to $168.5 million in regional markets.
Digital audio revenues grew by 35.2% to $20.8 million.
LiSTNR crossed over 850,000 signed-in users with on-platform listening in the most recent six months growing 3.7 times to 2.7 million average monthly streams from 0.7M average monthly streams in the same period in 2021.
The company declared a fully franked dividend of 4.75 cents per share.
OUTLOOK
SCA expects September quarter broadcast raido revenue to be up 5% to 6% with strong metro radio momentum.
Digital audio is expected to be up 30%
CEO Grant Blackley: “SCA is pleased to report underlying EBITDA of $87.9 million and underlying NPAT of $27.4 million, up 2.8% and 38.4% respectively on the prior year.
"With a robust balance sheet and strong cashflow, we are continuing to invest for the future while returning funds to shareholders through fully franked dividends and our on-market share buy-back.
“Commercial radio audiences in metro markets reached record levels in recent surveys. The total audience of 12 million recorded in GfK Survey 4 was the highest ever and a 7.6% jump over the prior year.
"SCA’s Hit and Triple M stations have led this rise as audiences return to entertainment and music formats. “SCA’s broadcast radio revenue grew by 8.0% to $372.1M.
"This was led by growth in national revenue of 9.7% in metro markets and 8.9% in regional markets. Local advertisers were directly affected by floods and supply chain issues resulting in lower levels of growth in local advertising.
“SCA has completed a five-year program to install digital operating infrastructure across all offices and every asset. This allows SCA to distribute our premium content from any location to audiences at a time and on a device on their choice.
"In addition, expansion of our on-demand content is materially adding to audience and advertiser awareness of our radio assets.
"“Our investment in a fully owned and operated digital audio ecosystem, LiSTNR, also positions SCA to take a leading share of the rapidly expanding Australian digital audio market.
"LiSTNR hosts a library of compelling digital audio content including SCA’s 99 live radio stations; 25 music genre stations; 108 original podcasts (including Australia’s favourite Hamish & Andy podcast); live AFL, NRL, and international cricket; local news and information around Australia; and domestic and international licensed content from the BBC, ESPN, Schwartz Media, the Royal Institution of Australia, SoundCloud, and other partners.
“We are very comfortable retaining our television assets. SCA’s television assets delivered an EBITDA margin of 23.7% and a market leading revenue-to-audience power ratio.
"The business is streamlined, efficient and capital light.
"Television is also a strong marketing platform for the growth of LiSTNR, delivering around $10M of in-kind marketing support in FY22. The ongoing contribution from television will support future returns to SCA’s shareholders through fully franked dividends and resumption of the current share buy-back.”
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