SCA annual results show how digital, the switch from broadcast media to tracking individual listeners, is taking hold.
The company reported rising audio revenue and strong audience growth in the year to June.
Digital audio revenues grew by 35.2% to $20.8 million in the year to June. And SCA is forecasting 30% growth in the September quarter.
Compare that to broadcast radio revenue up by 9.4% to $182.7 million in metro markets and by 6.4% to $168.5 million in regional markets.
And SCA’s LiSTNR hit 850,000 signed-in users, growing 3.7 times to 2.7 million average monthly streams from 0.7M average monthly streams in 2021.
“They're solid growth numbers,” CEO Grant Blackley told AdNews. “And naturally, over time, you'll start to see those growth numbers have to dissipate because the universe is getting larger.
“But we feel we are making a substantial contribution in digital audio. We think we're leading that pathway. And the numbers will confirm that.”
Blackley says the resilience of radio continues to shine.
“I think the radio industry has come together as one … to fundamentally work together to ensure that the changing behaviour of consumers and their consumption has been very measured,” he says.
“What you've seen is that we are, as an industry and as peers, controlling the transition from a broadcast one to many across to a one to one environment, with known audiences.
“And I think that's an accolade where the radio industry should hold his head up high. Not all sectors have been able to do that.”
SCA saw, like many in the media sector, a slowing in the advertising market in July, a pause post the end of the financial year.
Despite that SCA believes it will grow revenue 5% to 6% in the September quarter.
“There was a slowdown we had as an industry but we enjoyed a good June,” he says.
“Sometimes with a good June, you don't cross that bridge into the new fiscal year as strongly.
“Pleasingly we see a resumption of recovery.”
SCA has an advantage with its fully owned and operated digital audio ecosystem, LiSTNR.
Blackley says this positions SCA to take a leading share of the rapidly expanding Australian digital audio market.
LiSTNR hosts a library of 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.
Slides from the results presentation:
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