SCA's advertising revenue returning faster than forecast

Chris Pash
By Chris Pash | 6 May 2021
 
Getty

Broadcaster SCA says its revenue improvement coming out of the pandemic is tracking head of guidance.

March quarter advertising revenue was down 4.3% on the same three months last year but ahead of guidance of -6% to -8%

Cost control remains a key focus with 2021 financial year costs now forecast $250 million to $255 million, ahead of
guidance of $255 million-$260 million.

The company has reduced its cost base by $30 million or 10% of non-revenue related costs since the 20219 financial year.

SCA plans to resume dividends with an end of 2021 financial year payout.

In a trading update, SCA says its TV affiliation negotiations with Ten (after Nine switched to WIN) are on-going. 

Full year EBITDA range is forecast $118 million - $125 million. 

Net debt forecast at $55 million - $65 million.

SCA says the advertising market in strong recovery, with a meaningful quarterly improvement in radio and television since the middle of 2020.

Audio revenue growing is underpinned by a strong increase in digital audio listening and resulting monetisation.

The company says radio listening has recovered above pre-COVID levels:

sca radio listening may 2021

 

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