Southern Cross Media Group reports financial loss amid market challenges

Southern Cross Media Group has reported a financial loss for the 2026 financial year, citing challenging market conditions and a decline in advertising revenue. The group, which resulted from a merger involving Seven West Media and Southern Cross, saw gross revenue fall 4.5% to $1.869 billion. Net Profit After Tax (NPAT) declined to $9.9 million, while pro forma EBITDA fell 12.8% to $200 million.

The company faced significant headwinds in its television division, including $65 million to $70 million in writedowns of legacy TV content contracts. To combat these difficulties, the group has initiated a major cost-reduction program targeting annualised savings of $145 million to $150 million, which is expected to involve the loss of 250 to 300 jobs, primarily within the television sector.

Despite the overall decline, digital revenue grew by 11% to $320 million, driven by platforms such as 7plus, LiSTNR, and The Nightly. CEO Rohan Lund noted that digital audio growth outpaced the decline in broadcast revenue for the first time. The company has also refinanced its borrowings into a single $569 million facility to enhance financial flexibility through FY30.