How SEG’s Sports Media Assets Fueled a 62% EBITDA Surge in FY25
Sports Entertainment Group (SEG) reported a 62% jump in underlying EBITDA for FY25, underpinned by strong margin expansion and operational leverage. The company reaffirms its optimistic FY26 outlook with double-digit EBITDA growth expected.
- Underlying EBITDA rises 62% to $10.5 million
- Revenue grows to $110.2 million with 350bps margin improvement
- Net cash position of $1.3 million plus $19 million receivable from Perth Wildcats sale
- Final dividend of 1.0 cent per share declared, adding to prior special dividend
- FY26 guidance confirms double-digit EBITDA growth and margin expansion
Strong Financial Momentum in FY25
Sports Entertainment Group (SEG) has delivered a robust financial performance for the fiscal year ending 2025, with underlying EBITDA soaring 62% to $10.5 million. This impressive growth was accompanied by a 350 basis point improvement in EBITDA margin, reflecting the company’s ability to leverage a largely fixed cost base effectively. Revenue climbed to $110.2 million, marking a steady increase that outpaced market expectations.
Strategic Asset Base and Market Position
SEG’s unique position in the sports media landscape is anchored by its extensive portfolio of broadcast licenses, sports rights, and ownership of professional teams across multiple codes including AFL, NRL, and cricket. The company’s multi-platform reach spans radio, digital, social media, TV, and print, enabling it to offer advertisers unparalleled access to live sports audiences. Recent acquisitions, such as the RSN racing network and Racing and Wagering Western Australia’s audio assets rebranded as SEN Turf, further strengthen SEG’s footprint in the lucrative racing segment.
Balance Sheet Strength and Capital Management
SEG ended FY25 with a net cash position of $1.3 million, a significant turnaround from net debt of $13.3 million the previous year. This improvement is bolstered by $19 million receivable from the sale of its Perth Wildcats stake, with $6.5 million already received and the remainder expected by mid-2026. The company’s disciplined capital management has supported sustainable dividend payments, including a final dividend of 1.0 cent per share, adding to a 2.0 cent special dividend paid earlier, returning a total of $8.3 million to shareholders over the past year.
Growth Outlook and Strategic Ambitions
Looking ahead, SEG reaffirms its guidance for double-digit EBITDA growth in FY26, driven by continued margin expansion and operational efficiencies. The first four months of FY26 have already delivered a 63% increase in underlying EBITDA compared to the prior year, with September marking the highest revenue and EBITDA month since the 2018 merger that formed the current group. SEG’s strategy to build a ‘whole of sport’ content ecosystem positions it well to capitalize on media consolidation opportunities and evolving market trends, including digital-first content and women’s sport.
A Unique Sports Media Ecosystem
SEG’s integrated model combines content production, talent management, live event coverage, and team ownership, creating barriers to entry that are difficult to replicate. This ecosystem not only attracts advertisers seeking premium live sports audiences but also provides multiple revenue streams across diverse platforms. With a mature cost base and significant investments already made, the company expects future revenue growth to be largely margin accretive, underpinning sustainable shareholder returns.
Bottom Line?
SEG’s strong FY25 results and confident FY26 outlook underscore its growing influence in Australia’s sports media sector, setting the stage for potential consolidation moves.
Questions in the middle?
- How will SEG’s recent acquisitions impact its competitive positioning in racing media?
- What are the risks around timing and receipt of the remaining Perth Wildcats sale proceeds?
- How will SEG balance growth investments with maintaining sustainable dividend payments?
