Broadcaster SCA is selling its regional television assets to Network 10.
The company announced to the ASX it has signed heads of agreement for the sale of its television licences in the three aggregated markets of Queensland, southern New South Wales and Victoria.
The terms of the sale provide that SCA will be entitled to receive a share of the profit of the licences for five years after completion of the sale.
Based on current and forecast advertising market conditions, SCA expects the aggregate gross consideration to be
received to be in the range of $15 million to $20 million. The net present value on completion of the sale is expected to be in the range of $10 million to $15 million.
SCA will retain its local salesforce and will provide third party local advertising sales representation services for Network 10.
"This announcement reinforces Paramount’s commitment to the Australian market and in particular Network 10," Beverley McGarvey, president of Network 10, told Australia staff in an email.
SCA said talks continue with "several other parties" on the sale of television assets in Tasmania, Spencer Gulf/Broken Hill, Darwin, Remote Central and Eastern Australia.
SCA's focus is "All About Audio".
In its latest market update, SCA posted a 1.5% lift in revenue to $122.3 million in the September quarter with digital audio revenue leading the charge in a short advertising market.
Total audio revenue was up 4.8% to $100.4 million, driven by growth of 48.2% in digital and 1.1% in broadcast radio.
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