Southern Cross Austereo (SCA) has recorded a revenue boost in its half year results, following its operational turnaround and gains in its advertising revenue.
In a statement to the ASX, net profit after tax (NPAT) increased 25.1% to 43.4 million while revenue in the first half of the financial year was up by 4.7% for the group to $322.0 million.
In addition, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 6.5% to $91.4 million.
SCA's net debt was also reduced to $473 million, down $101 million on the prior corresponding period.
SCA CEO Grant Blackley says that key to the growth has been its widely publicised restructure.
The restructure saw a new executive team formed and a new structure based around a focus on sales, content and operational verticals.
“These results demonstrate material progress in the international turnaround of SCA,” Blackley says.
“We have been heavily investing in our strong radio business, particularly on talent and marketing. We expect to derive increasing benefit from those investments in future periods.”
In addition, SCA benefited from stronger advertising revenues. Total metro radio revenues increased by 6.9% in a market that was up 4.6%. Triple M revenue was up 12.5% while revenue for the Hit network was flat, but “trending up”.
Regional television revenue was up 1.9% while regional radio revenue was up 5.0%
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