Southern Cross Media Group Ltd Completes Strategic Exit from Television

Southern Cross Media Group Ltd (ASX: SXL), an Australian company specializing in broadcasting and publishing, has finalized its exit from the television sector. The company sold its remaining television assets to Seven West Media (ASX: SWM) for $3.75 million, marking the completion of its strategic shift towards an “All About Audio” focus. This sale includes television stations in Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin, and Remote Central and Eastern Australia.

The transaction, which was finalized on June 30, 2025, brings the total proceeds from Southern Cross Media’s television asset divestments to between $19 million and $24 million. This includes profit shares from previous sales to Network Ten. The proceeds represent a multiple of approximately 4–5 times FY25 proforma EBITDA. The funds have been utilized to significantly reduce the company’s net debt, which now stands at approximately $68 million, down from $107.5 million a year earlier.

Southern Cross Media reported a 5% year-on-year growth in FY25 audio revenue, driven 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, bookings for July and August 2025 remain consistent 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, the Board has decided to resume its dividend policy, reflecting the company’s improved financial position.

Seven West Media Expands Regional Television Presence

Seven West Media has completed the acquisition of television assets from Southern Cross Media Group, enhancing its position as Australia’s largest regional commercial television broadcaster. The acquired assets include television licences and associated assets operating in Tasmania, Darwin, Spencer Gulf, Broken Hill, Mt Isa, and Remote, Central and Eastern Australia.

Following the acquisition, SWM will provide continuity for regional communities, offering access to leading news, sport, and entertainment content on Seven and 7plus. The transaction, valued at $3.75 million, is expected to be immediately earnings accretive in FY26.

Jeff Howard, SWM’s Managing Director and Chief Executive Officer, expressed satisfaction with the acquisition, emphasizing its strategic importance in solidifying SWM’s position as a leading regional broadcaster. The company remains committed to ensuring that regional communities have access to local and national news bulletins and comprehensive entertainment content.