Seven West Media Ltd. Completes Strategic Acquisition of Southern Cross Television Assets
In a significant move within the Australian media landscape, Seven West Media Ltd. (ASX: SWM) has completed the acquisition of television assets from Southern Cross Media Group Limited (ASX: SXL). This acquisition, finalized on June 30, 2025, includes television licenses and associated assets operating in Tasmania, Darwin, Spencer Gulf, Broken Hill, Mt Isa, and Remote, Central, and Eastern Australia. The transaction, valued at $3.75 million, marks a pivotal moment for Seven West Media as it becomes the largest regional commercial television broadcaster in Australia.
The acquisition is expected to be immediately earnings accretive in the fiscal year 2026, underscoring its strategic importance to Seven West Media’s growth objectives. Jeff Howard, the Managing Director and Chief Executive Officer of SWM, expressed satisfaction with the acquisition, noting its role in solidifying the company’s position as a leading regional broadcaster. “Our ongoing commitment is to ensure that our regional communities can access our local and national news bulletins, our compelling sports coverage, and our diverse entertainment content on Seven and 7plus,” Howard stated.
This acquisition not only enhances Seven West Media’s broadcasting reach but also ensures continuity for regional communities, providing them with access to high-quality news, sports, and entertainment content. The strategic move aligns with SWM’s broader goal of strengthening its presence in the regional media market, offering a robust platform for local and national content.
Southern Cross Media Group Finalizes Strategic Exit from Television
In parallel, Southern Cross Media Group (ASX: SXL) has completed its strategic exit from the television sector, focusing its efforts on its “All About Audio” strategy. The sale of its remaining television assets to Seven West Media brings the total proceeds from its television divestments to between $19 million and $24 million. This includes upfront cash of $3.75 million received on June 30, 2025, and profit shares from prior sales to Network Ten.
The transactions have significantly reduced Southern Cross Media’s net debt, bringing it down to approximately $68 million from $107.5 million a year earlier. This financial restructuring is part of Southern Cross Media’s broader strategy to concentrate on its audio business, which reported a 5% year-on-year growth in FY25 audio revenue. The growth was supported by increased market share and a temporary boost from Federal Election advertising in April.
Despite a softer advertising market in the final two months of FY25, Southern Cross Media remains optimistic, with bookings for July and August 2025 on par with the prior year’s growth. The company has reaffirmed its FY25 unaudited guidance, highlighting non-revenue related costs of approximately $265 million and plans to maintain FY26 costs. Capital expenditure is expected to remain under $10 million as part of its financial turnaround strategy.
This strategic shift underscores Southern Cross Media’s commitment to focusing on its core audio business, leveraging its strengths to drive future growth and profitability. The sale of its television assets to Seven West Media not only marks the end of its television operations but also sets the stage for a focused and strategic future in the audio sector.