SCA has posted a trading update, showing both radio and television advertising sales dipping in the four months to April.
The sector has been cutting costs in a falling market and SCA says its $30 million cost reduction program will deliver full year non-revenue-related costs below $310 million.
The broadcaster told the ASX that audio outperformed with revenues up 2% over the four months to April compared to the same period last year.
Digital audio continued to grow, led by LiSTNR, with gross revenue growth of 56%, substantially above the overall market.
LiSTNR delivered positive EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the first time in April and is on track to be profitable for the June quarter.
Radio advertising revenues fell by 2% but SCA’s metro market share improved, given the comparable decline of 4% in the metro radio advertising market.
SCA’s regional television business has continued to decline, with year to date revenue down 10%.
May and June total group advertising bookings are pacing slightly ahead of the last year.
The company says the recently announced closure of the Network 10 programmed WIN/Seven joint venture in Mildura will have an immaterial financial impact.
Total group revenues are in line with the same four months last year.
The company reported revenue down 2.9% to $252.6 million for the half year to December and net profit after tax at $4.4 million, a drop of 71.1%.
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