Broadcaster SCA has received unsolicited approaches from several parties interested in the company's regional television assets.
SCA: "The approaches, which are non-binding and incomplete, do not include details of timing, price or conditions. There is no guarantee that any ofthese approaches will result in a transaction."
The company has hired financial adviser Grant Samuel to assess strategic options for its television business, including engaging with interested parties regarding a potential sale.
In the half year to December, television revenue was $65.8 million, down 22%.
SCA also announced an on-market share buy-back of up to $40 million. However, EBITDA *( earnings before interest, taxes, depreciation, and amortisation) was up 27.3% to $17.5 million. The change of affiliation from Nine to Ten in July 2021 delivered reduced revenues but EBITDA increased due to the stronger market (+9%)1 and significant reduction in programming costs.
The company: "With modest gearing and consistent free cash flow generation expected to continue, the Board has
approved the buy-back to enhance shareholder returns. SCA will fund the buy back from existing cash reserves and debt facilities, while continuing to invest in SCA’s digital audio strategy to growaudiences and revenue opportunities."
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.