Southern Cross Media Group Limited (ASX: SXL) AGM Addresses and Trading Update
AGM Overview
Southern Cross Media Group Limited (ASX: SXL) held its Annual General Meeting today, providing shareholders with the opportunity to participate in discussions regarding the company’s future. The meeting featured addresses from Heith Mackay-Cruise, Chair, and John Kelly, CEO, who provided vital updates reflecting on the company’s performance and strategic direction.
Financial Performance Review
In his address, Chair Heith Mackay-Cruise acknowledged that the previous financial year was challenging, with group revenue at $499.4 million, a decline of 1% compared to FY23. Underlying EBITDA fell 14.3% to $66.2 million. The Board decided against a final dividend for FY24 to focus on cash preservation and reducing net debt. Mackay-Cruise noted the importance of adapting to macroeconomic challenges by transforming the operating model and completing digitisation initiatives.
Trading Update Highlights
CEO John Kelly reported a positive start to the financial year, with Q1 total revenue reaching $122.5 million, a 1.5% increase year-on-year. Total Audio revenue rose 4.8%, driven by a significant 48.2% growth in digital segments. LiSTNR, SCA’s digital audio platform, now boasts 2.1 million users and ranked first among podcast networks in Australia, achieving EBITDA profitability in Q4 FY24.
Strategic Initiatives and Future Outlook
SCA is actively pursuing the sale of its television assets, which aligns with its “All About Audio” strategy. While discussions have extended longer than anticipated, progress is being made with interested parties. Kelly reiterated the company’s commitment to maintaining operational momentum and improving financial performance, projecting ongoing revenue growth in audio segments while keeping costs controlled.
Executive Comments
John Kelly expressed enthusiasm regarding SCA’s direction: “We are confident in our strategic vision and are excited about improving cash flow earnings for our shareholders.” He emphasised the firm’s digital transformation efforts and the importance of delivering compelling content in driving audience engagement and revenue growth.
Kelly highlighted, “LiSTNR’s growth is accelerating, and we expect further positive changes as we build on our success in both metropolitan and regional markets.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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