Southern Cross Media Group (ASX:SXL) Reports FY26 Revenue Decline and Cost Reset

Aditi Sarkar

21 October 2026 10:29 PM AEDT

Southern Cross Media Group (ASX:SXL) Reports FY26 Revenue Decline and Cost Reset

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Highlights

Southern Cross Media Group (ASX:SXL) reported FY26 pro forma revenue of AUD 1,869.6 million, down 4.5%.
FY26 EBITDA excluding onerous contracts fell 15.8% to AUD 191.9 million.
The company reported FY26 net profit after tax of AUD 9.9 million on a pro forma basis.
FY26 net debt reached AUD 362.8 million, compared with AUD 357.0 million in FY25.

Southern Cross Media Group Limited (ASX:SXL) operates Australian television, audio, publishing and digital-media businesses following its merger with Seven West Media in January 2026. Its August FY26 results reported lower group revenue and earnings alongside higher digital revenue and a company-wide cost reduction program. On 21 October 2026, Southern Cross Media Group (ASX:SXL) closed at AUD 0.505, down 1.94% for the day. The latest financial disclosures also detail the group’s debt position, divisional results and operating priorities.

Company Business

Southern Cross Media Group operates three reporting divisions: Television, Audio and Publishing. Television includes the Seven Network, associated broadcast channels, 7plus and digital news operations. The Audio division incorporates the Hit and Triple M radio networks and the LiSTNR digital-audio service. Publishing encompasses The West Australian, The Sunday Times, PerthNow and The Nightly.

The merger with Seven West Media became effective on 7 January 2026. Southern Cross Media Group (ASX:SXL) now reports combined financial results for these operations. Its FY26 release presents pro forma prior-year comparisons on the basis that the two businesses had been combined throughout both reporting years. This accounting basis differs from the statutory consolidation period.

Recent Development

In August 2026, the company reported that AUD 30 million of annualised merger cost savings had been delivered. An expanded cost program commenced during the fourth quarter of FY26, targeting AUD 145 million to AUD 150 million of annualised savings in total, including savings already achieved. These figures are company targets rather than completed savings.

The group also combined its previous borrowing arrangements into a syndicated facility totalling AUD 569 million. Its August announcement stated that the facility had no syndicated maturities until July 2029. Southern Cross Media Group (ASX:SXL) identified advertising-market conditions and the restructuring program as matters affecting subsequent operating periods.

For early FY27 trading, management reported television revenue tracking broadly flat year on year, audio revenue increasing at a low-single-digit rate and publishing revenue remaining stable. These statements described trading at the time of the August results, rather than completed FY27 outcomes.

Financial Performance and Sector Context

For FY26, pro forma revenue was AUD 1,869.6 million, compared with AUD 1,958.2 million in FY25, a decline of 4.5%. Total costs fell 3.1% to AUD 1,677.7 million. EBITDA excluding the effect of onerous contracts declined from AUD 227.6 million to AUD 191.9 million, while EBITDA including that effect was AUD 200.0 million. The company reported a pro forma net profit after tax of AUD 9.9 million, versus AUD 23.3 million a year earlier.

Television revenue fell 6.6% to AUD 1,251.5 million and EBITDA excluding onerous contracts declined 32.3% to AUD 109.6 million. Audio revenue increased 1.4% to AUD 429.9 million, while divisional EBITDA rose 15.5% to AUD 100.4 million. Publishing revenue decreased 3.1% to AUD 187.0 million and EBITDA declined 2.4% to AUD 26.2 million.

The company attributed advertising conditions partly to declines in the Australian television and metropolitan radio advertising markets. Group digital revenue grew 10.7% to AUD 320.3 million. Cash flow available for debt service fell 52.7% to AUD 41.0 million. Net debt increased 1.6% to AUD 362.8 million, with reported leverage rising from 1.5 times to 1.8 times.

Risks to Consider

Southern Cross Media Group (ASX:SXL) faces fluctuations in advertising demand across television, radio and publishing. Revenue also depends on audiences, advertiser expenditure and digital service usage. Programming and sports-rights obligations, restructuring expenditure and technology investment affect the cost base. The company’s indebtedness brings refinancing, interest expense and cash generation into consideration.

Further uncertainty relates to implementing planned cost reductions while integrating operations after the January merger. Changes in audience measurement, broadcast distribution and digital consumption can also alter the mix of advertising revenue.

What to Watch Next

The company scheduled its annual general meeting for November 2026. Upcoming disclosures may provide details on management and governance matters, cost-program implementation and the combined operating model. Subsequent financial results will show whether the television, audio and publishing trading conditions reported in August have changed.

For Southern Cross Media Group (ASX:SXL), the next reporting periods will provide comparisons for segment revenue, digital sales, EBITDA, cash flow, capital expenditure and net debt. Published performance will also distinguish savings achieved from the longer-term cost reduction target.

Key Insights

FY26 results showed lower pro forma revenue and EBITDA, with differences across television, audio and publishing. Digital revenue increased while reported cash flow available for debt service declined. Southern Cross Media Group (ASX:SXL) is implementing a cost reduction program and has refinanced its borrowings. Subsequent disclosures will provide updated financial results and information on progress against the group’s operating plans.

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