Shares in Southern Cross Media Group have fallen after the company revealed a significant drop in profits in its first major financial results following its expanded media operations, highlighting ongoing challenges in Australia’s advertising and broadcasting sectors.
The company reported a net loss after tax of $3.8 million, while its underlying pro-forma net profit fell sharply to $9.9 million — down 57.6 per cent compared with the previous year. Investors reacted negatively to the results, with shares declining after the announcement.
The biggest pressure came from the company’s television division, which suffered a downturn due to weaker free-to-air advertising conditions and contract-related writedowns. Television advertising revenue declined by 9.9 per cent, contributing to a $13 million loss in the TV business.
Southern Cross Media has faced a difficult environment as traditional television advertising continues to compete with digital platforms and changing consumer viewing habits. The broader Australian media industry has been under pressure from reduced advertising budgets, streaming competition and shifts in audience behaviour.
However, the company’s audio division provided some positive momentum, with revenue increasing to around $429.9 million. Growth in digital audio platforms helped offset weaker traditional radio advertising conditions, showing the company’s efforts to transition towards online content and streaming audiences.
Publishing operations also faced challenges, with revenue declining as the company navigates a changing media landscape. Despite pressure across traditional channels, Southern Cross highlighted growth in digital platforms including 7plus, LiSTNR and The Nightly, which recorded strong audience expansion.
Chief executive Rohan Lund said the company remained focused on cost discipline, improving market share and strengthening its ability to connect advertisers with large audiences across television, radio and digital platforms.
The results come after major structural changes in the Australian media sector, including the combination of Southern Cross Media and Seven West Media assets. Analysts have been watching closely to see whether the enlarged group can achieve cost savings and build a stronger digital position.
Investors will now be monitoring whether management can stabilise earnings, improve advertising performance and accelerate digital growth as competition from global technology companies continues to reshape the media industry.
