Credit: Margarita Shtyfura on Unsplash
Southern Cross Media is set to cut between 250 and 300 full-time roles before the end of June as a declining advertising market forces a significant reset of its cost base.
The company told the ASX this morning conditions had worsened materially in the fourth quarter, particularly in television.
Group revenue for FY26 is now expected at $1.86 to $1.87 billion, around 2.5% below previous guidance of $1.91 to $1.92 billion.
Underlying EBITDA has been cut to $185 to $190 million from $200 to $220 million.
According to internal correspondence seen by AdNews, staff were told this morning the decisions had not been taken lightly, with leadership acknowledging a tightening advertising sector and global macroeconomic pressures were impacting all businesses.
A company-wide town hall followed.
CEO Rohan Lund said the business needed to capture the full benefits of scale across its platforms.
"Unfortunately, this means saying goodbye to some talented colleagues who have helped build our business. We are deeply grateful for their contributions, and we are committed to supporting them through this transition," Lund said.
The cuts form part of a broader cost reduction program expected to generate annual run-rate savings of $145 to $150 million, including $30 million in merger synergies already delivered.
A restructuring charge of around $20 million will hit FY26 results. The program primarily targets mid and back office and corporate functions, as well as non-labour costs.
The ASX release also flagged a non-cash onerous contract provision of $65 to $70 million on legacy TV content contracts, recognised through the purchase price accounting process from the SCA-Seven West Media merger.
The provision is expected to lift reported EBITDA by around $5 million in FY26 and $30 million in FY27, with no cash impact.
Southern Cross pointed to audience gains, total TV audience share is up 1.1 percentage points for the financial year through May, HIT holds the number one network position for people 25-54, and Triple M leads for men 25-54.
The cuts follow comments Lund made in a staff email reported by AdNews in May, in which he said the business needed to "reset our costs quickly so we have the capacity to do what we do best."
Those comments came as the group worked through integrating Seven West Media and Southern Cross Austereo, a merger completed in January that brought together the Seven Network, The West Australian, The Sunday Times, The Nightly, Triple M, Hit Network and LiSTNR.
At announcement, the companies identified annual cost synergies of $25 to $30 million over 18 to 24 months.
The first combined half-year results showed revenue of $1.008 billion, down 1.5%, with television revenue falling 2.1% to $712 million.
No dividend was declared as the group remained focused on debt reduction and integration.
Full-year results and FY27 guidance are scheduled for August 11.
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