Shows
Seven West Media and Southern Cross Austereo merger analysis
Seven West Media and Southern Cross Austereo merger faces challenges amid flat TV revenue and strong audio growth, says James Manning
Seven West Media and Southern Cross Austereo merger faces challenges amid flat TV revenue and strong audio growth, says James Manning
– Seven West Media and Southern Cross Austereo merged as Southern Cross Media Group, pending a future shareholder-named vote.
– Advertising revenue is flat, but audio assets like podcasts showcase growth and cost savings of $30 million have been achieved.
Seven West Media and Southern Cross Austereo have merged, now operating as Southern Cross Media Group under the “SXL” ticker symbol.
The entity has not adopted a new name yet, with any potential change dependent on a shareholder vote.Challenges have arisen during the transition, but new CEO Rowan Lond’s appointment is viewed favourably.
Seven West claims a reach of around 20 million Australians monthly, comparable to Nine.
However, direct comparisons are complex due to differing business models, especially after Nine excluded its radio assets.
Television advertising revenue remains flat, bolstered by events like the Commonwealth Games and AFL coverage.
In contrast, the group’s audio assets, particularly podcasts and the LiSTNR platform, are experiencing significant growth.
These segments are achieving profit margins similar to television, despite their lower overall revenue.
The merged entity has achieved $30 million in cost savings so far, with a goal of $145 million in total reductions planned.
The broader state of the Australian media industry and the specific operational strategies of the new entity will continue to evolve as the market adapts to these changes.
