Photo credit: Fran Jacquier via Unsplash
SCA is putting its television assets up for sale as the broadcaster reports a 1% decline in revenue to $499.4 million for the year to June.
The company posted a loss. Net profit after taxes was -224.6 million dollars. Adjusted profit fell by almost half to 11.2 million dollars.
SCA recorded a non-cash impairment of US$326.1 million (US$228.3 million after tax) against the value of the broadcasting licenses in the Broadcasting cash-generating unit.
Broadcast revenues fell 1.6% to $366.6 million. Digital revenues rose 42.2% to $35 million.
Television revenues fell 8.7% to $97.5 million.
CEO John Kelly said the company had restarted a strategic review of its non-core regional television assets.
The company is in “active negotiations with several parties” interested in acquiring these assets.
“The sale of our regional television assets will enable us to focus on optimising our leading radio and digital audio assets, led by LiSTNR, HIT and Triple M,” said Kelly.
SCA’s core strategic focus is to be entirely audio-focused and to be the most profitable local audio company in Australia, led by LiSTNR, HIT Network and Triple M Network.
The company is keeping its expenses firmly under control and will make further “significant and permanent cost reductions” in the current financial year.
Audio sales in the current September quarter exceed those of the same three months last year, but the market remains tight.
The company says its performance improved in the first half of the year, driven by a larger share of advertising revenue in urban radio, strong growth in digital audio revenue and cost discipline.
“SCA maintained its dominant ratings in our key metropolitan and regional radio markets, as well as in digital audio,” said Kelly.
“Despite the difficult conditions in the advertising market, we have made a strong start to the new financial year thanks to our improved financial performance in the second half of the year.
“Our nationwide leadership position in the core buyer demographic of men and women ages 25 to 54 provides our sales teams with a strong platform for continued growth.
“In the fast-growing digital audio sector, LiSTNR has reached over two million registered and addressable users, of whom around one million interact with LiSTNR monthly.
“This is not only a testament to the range of interesting content on LiSTNR, but also to the excellent and personalized user experience that LiSTNR offers.”
Non-sales costs were capped at $308.4 million (excluding one-time items), below the $310 million forecast.
Year until June 2024:
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