1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
Preparing video
Key points:
Southern Cross Media reports weaker revenue and profit but earlier-than-planned merger synergiesStrategy shifts to “total TV” with strong digital and 7plus growth to regain advertising sharePublishing and audio focus on trusted news, digital distribution and tighter cost control
Southern Cross Media CEO Rohan Lund outlines a mixed result for Southern Cross Media, with a 4.5% revenue decline and net profit down 57%, despite merger synergies arriving a year ahead of schedule. Lund states that group revenue is pressured by a soft and volatile advertising market, but operating expenses are tracking below inflation as cost-cutting progresses. He points to significant share gains in television, which he says limited the revenue impact of a weak TV market.
Television remains challenged, yet Lund highlights strong momentum in digital video. Total television, including the 7plus video-on-demand platform, is described as the key metric, with video-on-demand revenue said to be up around 50% year on year and accelerating. Lund’s view is that audiences are largely indifferent to terrestrial versus IP delivery, so strategy now focuses on “total TV” and capturing a greater slice of Australia’s roughly $30 billion advertising market, of which he notes $25 billion is digital.
On publishing and audio, Lund cites a “flight to trust” in news mastheads and good growth in digital circulation and products such as The Nightly. Audio is characterised as resilient, with digital platform LiSTNR offsetting linear declines. Lund also stresses the need to better monetise content across TikTok, Meta and YouTube, and supports tougher rules to ensure big tech and AI companies pay fairly for Australian news content.
