Southern Cross Austereo (SCA) has revealed a strong performance in its metro radio revenue, up 6.7% for the first-half FY19.
The boost has helped the business increase overall revenue as its TV assets struggled in current market conditions.
The audio segment (comprising metro and regional radio and podcasting) performed strongly, delivering 3.8% growth in revenue and 7.3% growth in earnings before interest, tax, depreciation and amortization (EBITDA).
Metro radio revenue was up 6.7% to $123.6m, propelled by improved ratings, monetisation of digital radio stations and a continued focus on premium selling.
SCA's underlying EBITDA grew 6.1% to $82.9M and group revenue was up 0.2% at $335.7M, while expenses were back 0.6% on the prior corresponding period.
Despite the strong performance of radio, SCA's regional TV network revenue was down $8.0m or 7.1% to $104m. SCA stated that roughly $4m of this was due to Nine no longer broadcasting cricket.
However, the business revealed that January and February trading is slightly ahead of the previous year, with Nine’s tennis coverage contributing positively to the January result for television.
According to SCA, advertising markets across all assets are trading shorter than normal ahead of the federal election. Increases in election-related spending are to be expected and may be partially offset by reduced spending in other categories.
SCA CEO Grant Blackley said the business "outperformed" in each sector and strong and disciplined cost controls were evident.
“SCA’s strong audio result was driven by continued growth across metro and regional radio and the emerging podcasting sector," Blackley said.
“SCA’s new national structure and workforce planning initiatives are starting to pay dividends. The streamlined business and decision-making processes are delivering operating efficiencies and improved cost control.”
Looking ahead for the year, SCA said it will maintain focus on bedding down the new national operating structure and workforce initiatives, delivering further operating efficiencies and positioning the group to "take advantage" of improvements in advertising markets.
Blackley also said the business would continue to develop its podcasting strategy, with its original content and premium commercial platform, PodcastOne, expected to surpass 100m downloads since its launch in August 2017.
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