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Southern Cross profit drops on NSW TV sale

Simone Ziaziaris  |  23 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Southern Cross Austereo's (ASX: SXL) half-year net profit has dropped 21.2 per cent to $38.2 million, following the recent divestment of its northern NSW TV business.

The company, which operates Triple M and Hit Network radio stations and has a regional television affiliation with the Nine network, says revenue for the six months to December 31 had also fallen, by 5.3 per cent to $333.3 million.

Earnings also dropped to $78.1 million, from $92.6 million a year ago.

Southern Cross sold its Northern NSW TV business to Bruce Gordon's WIN television network in May last year for $55 million.

At the time, Southern cross flagged the sale to impact net profit after tax by $6 million.

Excluding the divestment of the northern NSW TV business, Southern Cross said regional media assets had performed well, with revenues growing by 4.6 per cent.

Costs fell 20 per cent from a year ago to $7.7 million and the company expects expenses to reduce further following its recent refinancing.

Chief executive Grant Blackley said the company has worked hard in the past two years to improve its balance sheet.

"With the systematic divestment of non-core assets including the northern NSW TV licence and 45 transmission towers the company has successfully reduced debt and leverage to improve the company's financial health," Mr Blackley said on Friday.

The company said group revenues will be up around five per cent for January and February and costs for the full year would be flat on last year.

SOUTHERN CROSS PROFIT FALLS

* Net profit down 21.2pc to $38.2m

* Revenue down 5.3pc to $333.3m

* Fully franked interim dividend of 3.75 cents, unchanged

 

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is an AAP journalist.

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© 2019 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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