SCA Posts 34% EBITDA Growth and Cuts Net Debt by $40M
Southern Cross Media Group (SCA) reports a robust FY25 with 5% revenue growth, a surge in digital earnings, and a significant reduction in debt, underpinning a resumed dividend payout.
- 5% revenue increase to $421.9 million
- 34.4% rise in underlying EBITDA to $71.1 million
- Digital revenue up 28.8%, LiSTNR turns EBITDA positive
- Net debt reduced by $40 million, leverage down to 1.10 times
- Fully franked final dividend of 4 cents per share declared
Strong Financial Momentum
Southern Cross Media Group Limited (SCA) has delivered a compelling set of financial results for the fiscal year ended June 30, 2025. The company posted a 5% increase in revenue to $421.9 million, driven by solid performances across its audio and digital segments. Underlying EBITDA surged 34.4% to $71.1 million, reflecting improved operational efficiency and revenue growth.
Underlying net profit after tax (NPAT) climbed significantly to $15.1 million, up $10.6 million from the previous year, signaling a successful transformation strategy that is bearing fruit.
Digital Audio – The Growth Engine
Digital revenue was a standout, rising 28.8% to $45.1 million. This growth was largely propelled by LiSTNR, SCA’s digital audio platform, which achieved EBITDA cashflow positivity for the first time with an underlying EBITDA of $2.0 million. LiSTNR’s audience now exceeds 2.4 million signed-in users, and its advertising technology hub is delivering premium commercial returns by enabling targeted advertising campaigns.
The platform’s success underscores SCA’s strategic pivot towards digital audio, capitalizing on the growing consumer shift to podcasts, streaming, and personalized audio content. LiSTNR’s reach of 10 million monthly listeners cements its position as a market leader in Australia’s digital audio landscape.
Disciplined Cost Management and Balance Sheet Strength
Despite inflationary pressures, SCA maintained tight cost control, with total underlying costs rising only marginally by 0.5%. Non-revenue related expenses decreased by $6.7 million to $263.5 million, better than guidance and reflecting ongoing efficiency initiatives.
Capital expenditure remained disciplined at $9.9 million, in line with guidance, with FY26 capex expected to stay below $10 million. This prudent capital management contributed to a $40 million reduction in net debt to $67.6 million, lowering the leverage ratio to a healthy 1.10 times. The company forecasts further deleveraging in FY26, with leverage expected to drop below 1.0 times.
Dividend Resumption and Outlook
Reflecting confidence in its financial position and future prospects, SCA’s board declared a fully franked final dividend of 4 cents per share. The company’s outlook for FY26 remains positive, with revenue forecast between $435 million and $440 million, EBITDA expected to rise to between $78 million and $83 million, and continued double-digit growth in digital audio revenues.
CEO John Kelly emphasized the company’s focus on the “Audience that Matters,” highlighting the strength of SCA’s metro and regional radio networks alongside its digital audio assets. The strategic divestment of regional TV assets has allowed SCA to concentrate resources on its core growth areas.
Overall, SCA’s FY25 results demonstrate a successful transformation, balancing growth, profitability, and financial discipline, setting the stage for sustained momentum in the evolving media landscape.
Bottom Line?
SCA’s digital pivot and disciplined financial management position it well for continued growth and shareholder returns in FY26.
Questions in the middle?
- How will SCA sustain digital audio growth amid increasing competition?
- What impact will advertising market conditions have on revenue forecasts?
- Can SCA further reduce leverage below 1.0 times while maintaining dividend payouts?
