Highlights

  • Southern Cross Media is implementing a major restructuring program targeting annual cost savings of up to $150 million.
  • The integration of Seven West Media continues following completion of the Merger in January 2026.
  • FY26 EBITDA and Revenue guidance were revised in June 2026 amid softer television Advertising conditions.
  • The FY26 full-year financial results are scheduled for release on 11 August 2026.

Southern Cross Media Group Limited (ASX: SXL) has undergone one of the most significant transformations in Australia's media industry. Within months, the company shifted from being primarily an audio-focused broadcaster to operating one of Australia's largest diversified media businesses following its merger with Seven West Media.

While the enlarged group now spans free-to-air television, metropolitan radio, digital audio, newspapers and streaming platforms, management is simultaneously pursuing substantial cost reductions as it adapts to changing advertising conditions.

Transformation Through the Seven West Media Merger

Southern Cross previously repositioned itself as an audio-focused Business after exiting regional television operations.

The company completed the sale of its remaining regional television Assets to Seven West Media on 30 June 2025, receiving $3.75 million upfront, with additional consideration linked to future profit-sharing arrangements.

Only months later, Southern Cross announced a merger with Seven West Media.

Under the scheme implementation agreement announced on 30 September 2025, Seven West Media shareholders received 0.1552 Southern Cross shares for each Seven West Media share, leaving existing Southern Cross shareholders owning approximately 50.1% of the combined business.

The transaction progressed through multiple regulatory approvals.

The Australian Competition and Consumer Commission cleared the merger during November 2025, while the Australian Communications and Media Authority subsequently approved the transaction subject to licence divestment undertakings covering 17 commercial radio licence areas, including 13 located in Western Australia.

Following Shareholder approval and court approval during December 2025, the merger was implemented on 7 January 2026.

The enlarged company now owns the Seven Network, The West Australian, Triple M, Hit and LiSTNR, creating one of Australia's largest multi-platform media businesses.

FY26 Guidance Revised

On 11 June 2026, Southern Cross announced a trading update that included revised Earnings guidance together with a significant restructuring program.

Management reduced FY26 group EBITDA guidance to between $185 million and $190 million, compared with previous guidance of $200 million to $220 million.

Revenue guidance was also revised to between $1.86 billion and $1.87 billion, reflecting softer television advertising conditions.

The company also announced an expected $65 million to $70 million provision relating to television content contracts.

Alongside the revised outlook, management outlined a broad cost reduction program designed to improve operating efficiency following the merger.

Cost Reduction Program Underway

The restructuring program includes the departure of up to 300 employees, with approximately 200 roles expected to come from Seven's television broadcasting and publishing operations.

Management expects the program to deliver annualised cost savings of approximately $145 million to $150 million.

Approximately $30 million of merger synergies had already been delivered ahead of schedule prior to the June update.

Restructuring costs of approximately $20 million are expected to be recognised during FY26.

Leadership also changed during the integration process.

Rohan Lund was appointed Chief Executive Officer during April 2026 following the departure of Jeff Howard earlier in the year.

Financial Performance

The final full-year financial results for the legacy Southern Cross Austereo business covered the year ended 30 June 2025.

During FY25, revenue increased 5.0% to $421.9 million, while reported EBITDA totalled $59.3 million.

Net profit after tax reached $9.2 million.

Digital revenue increased 28.8% to $45.1 million, while LiSTNR achieved positive EBITDA for the first time since its launch.

The company also paid a fully franked final Dividend of 4.0 cents per share during October 2025.

The first financial results following the merger covered the six months ended 31 December 2025.

The combined group reported revenue of $1.024 billion, while pro forma EBIT totalled $106.9 million.

Underlying net profit increased to $12.8 million.

Metro radio revenue share improved by 2.3 percentage points to 29.8%, while the digital business generated EBITDA of $2.8 million.

Pro forma net Debt declined by $16 million during the half to $338 million.

No Interim Dividend was declared, with management prioritising debt reduction following completion of the merger.

Board and Shareholder Developments

The company's shareholder register has also evolved following the merger.

Seven Group Holdings remains a significant shareholder with an interest of approximately 20.3%.

During 2026, several investors increased their holdings while shareholder notices relating to board composition were also submitted.

Board renewal has continued, with Teresa Dyson becoming Chair on 1 July 2026, following the retirement of Heith Mackay-Cruise, while Sylvia Wiggins joined the Board during July 2026.

Factors Supporting the Investment Case

Supporters of the company point to the scale created by combining television, radio and digital media assets.

Metro radio performance has remained comparatively resilient, while LiSTNR has continued improving financial performance.

Management has also delivered merger synergies earlier than initially expected, and the announced restructuring program may further improve operating efficiency over time.

Continued debt reduction following the merger also remains an important objective.

Risks to Monitor

Several risks remain.

Television advertising conditions continue to weaken, contributing to the reduction in FY26 earnings guidance.

The enlarged business also faces integration challenges following the merger together with restructuring execution risks.

Debt reduction remains an important priority, while regulatory licence divestments are still to be completed.

The company has also suspended interim dividend payments while focusing on strengthening its Balance Sheet .

What Investors May Watch Next

Southern Cross Media Group is scheduled to announce its FY26 full-year results on 11 August 2026.

Investors are likely to focus on whether earnings align with revised guidance, progress in achieving targeted cost savings, further debt reduction and management's FY27 outlook.

Additional updates regarding merger integration, licence divestments and future Capital management initiatives will also remain important areas of interest.

Southern Cross Media has completed a significant strategic transformation through its merger with Seven West Media. The coming reporting periods are expected to provide greater insight into whether the enlarged business can convert integration benefits and cost reductions into sustainable long-term earnings growth.