Southern Cross Media Group Limited
Australian free-to-air TV and radio broadcaster, merged with Seven West Media in Jan 2026.
On the record
Checkpoint: FY26 full-year results, first complete post-merger annual report
The call
A newly merged broadcaster with real spectrum assets is absorbing a shrinking TV business while streaming and rival radio networks keep chipping away at its audience.
Southern Cross Media Group owns television stations and radio networks across Australia, earning about A$1.8 billion per year. It is hard to replace because the company owns government-licensed broadcast spectrum and has established local audiences, but Netflix, Spotify, and YouTube are pulling viewers and advertisers away to streaming services, while competing radio stations like Nova Entertainment and ARN Media are also taking listeners. The real test comes in August 2026 when the company reports its first full year after merging with Seven West Media, if combined profits keep falling below what each company earned separately, or if leadership keeps changing during the merger, confidence will likely keep sliding.
Why
01
AI pressure: YouTube, Netflix, Spotify recommendation and ad-targeting engines. AI-driven feeds and targeted streaming ads keep pulling eyeballs and ad dollars away from broadcast TV and radio. Could AI do the core job? Only partly.
02
Bigger players: Netflix, YouTube, Spotify, plus domestic rivals Nova Entertainment, ARN Media, Nine Radio. Streaming platforms and rival radio networks are already eating audience and ad share, seen in Seven's 27% EBITDA drop. Could a giant copy it? Probably.
03
What protects it. Owns scarce broadcast spectrum and licences plus a profitable digital audio arm, LiSTNR, with 2.4 million signed-in users.
What would change this call
FY26 full-year results (~Aug 2026) show group EBITDA below A$200M guidance. Would confirm merger synergies are not materializing and TV decline is outpacing offsets.
Seven TV segment EBITDA in H2 FY26 continues double-digit YoY decline like H1's -27%. Would show streaming migration is structurally eroding free-to-air economics, not stabilizing.
Quarterly GfK ratings show Triple M/Hit losing metro share to Nova or ARN stations. Would indicate domestic radio rivals are directly taking audience share within the category.
Seven TV segment EBITDA in H2 FY26 continues double-digit YoY decline like H1's -27%. Would show streaming migration is structurally eroding free-to-air economics, not stabilizing.
Quarterly GfK ratings show Triple M/Hit losing metro share to Nova or ARN stations. Would indicate domestic radio rivals are directly taking audience share within the category.
Key numbers
- Stock down over 97% from all-time high of A$34.20
- Combined FY26 EBITDA guidance A$200-220M vs prior SCA A$233M
- Seven TV segment EBITDA down 27% YoY to A$67M
Named risks
- Post-merger group EBITDA guidance (A$200-220M) sits below pre-merger SCA standalone EBITDA (A$233M).
- ACMA-mandated divestiture of radio/TV licences in 17 areas across QLD, VIC, WA due to diversity rule breaches.
- Leadership churn during integration: CFO retiring, interim CFO in place, CEO/Chair transition completed Jan-Feb 2026.
- Share price down over 97% from all-time high of A$34.20 to sub-A$1 range as of July 2026.
- Secular ad-dollar and audience migration to Netflix, Spotify, YouTube cited by management as core merger driver.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Nova Entertainment | gaining on | Smooth FM #1 Sydney station in final 2025 ratings; Nova 93.7 leads Perth, Nova 100 leads Melbourne mid-2026 |
| ARN Media | contesting | A$282.6M FY24 radio ad revenue and Sydney metro demo leadership vs SCA's 29.8% metro share |
| Nine Entertainment (2GB/3AW) | contesting | 2GB share fell 13.8% to 11.2% by year-end 2025, shifting talk-radio balance |
| Netflix, Spotify, YouTube | losing to | SCA's own merger rationale cites need to 'withstand pressure' from streamers, 7 Jan 2026 |
Questions people ask
- Is Southern Cross Media Group profitable in 2026?
- Pre-merger SCA posted FY25 net profit of A$15.1M on revenue A$421.9M (25 Aug 2025). Post-merger with Seven West Media (7 Jan 2026), H1 FY26 guidance cut group EBITDA to A$200-220M, below FY25 standalone's A$233M, showing margin dilution not yet reversed.
- Who owns Southern Cross Media Group now?
- SXL is ASX-listed with no single controlling parent. After absorbing Seven West Media via scheme of arrangement on 7 January 2026 (A$385M deal), Seven Group Holdings, controlled by the Stokes family, holds roughly 20% of the combined entity.
- Why has Southern Cross Media's stock crashed?
- As of 26 July 2026 SXL's market cap was about A$253.75M, with shares trading in a A$0.51-0.94 range versus an all-time high of A$34.20, a decline of over 97%, reflecting structural TV/radio ad pressure and post-merger EBITDA dilution.
- Could AI replace Southern Cross Austereo's radio hosts?
- SCA itself frames on-air personalities like Hamish & Andy-style talent as a locked-in competitive advantage for 2026 lineups (24 Nov 2025 AGM). AI is deployed defensively via LiSTNR's Precision+ ad-targeting tool (Oct 2025) rather than to replace talent.
- Who is Southern Cross Media's biggest competitor?
- In radio, ARN Media, Nova Entertainment and Nine Radio (2GB/3AW) compete for the same licensed audience; Nova's Smooth FM took Sydney's #1 spot in the final 2025 ratings survey (20 Jan 2026). More broadly, management cites Netflix, Spotify and YouTube as the structural threat driving the SWM merger.
- What is LiSTNR and is it making money?
- LiSTNR is SCA's digital audio platform. Per the company's 24 Nov 2025 AGM disclosures, it held a 49% domestic digital audio revenue share, 2.4 million signed-in users, 29% YoY revenue growth, and turned profitable in FY25, though this is the company's own reported figure.
Timeline
- 2026-07-26SXL market cap ~A$253.75M, shares near 52-week low of A$0.51-0.94
- 2026-03-27LiSTNR expands Precision+ AI ad ecosystem with new video/creator formats
- 2026-02-24H1 FY26 results: group EBITDA guidance cut to A$200-220M
- 2026-02-11Seven TV segment H1 FY26 EBITDA falls 27% YoY to A$67M
- 2026-01-07SCA completes A$385M merger absorbing Seven West Media; SXL debuts combined
- 2025-11-24AGM: LiSTNR profitable, pro forma combined revenue ~A$1.8B disclosed
- 2025-10-23SCA 2025 Annual Report cites over 9 million national listeners
- 2025-08-25FY2025 results: revenue A$421.9M, NPAT A$15.1M, dividend resumed
- 2025-08-06SCA unveils LiSTNR Precision+ AI ad-targeting tool
- 2025-07-01SCA exits regional TV, selling remaining licences to Seven for A$3.75M
Revision history
26 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- gurufocus.com (2026-07-26)
- SWM officially absorbed by SCA in completed takeover (2026-01-07)
- Merged media giant debuts on ASX (2026-01-07)
- Southern Cross posts profit lift on digital audio growth (2025-08-25)
- SCA sharpens merger case with SWM at AGM (2025-11-24)
- ASX Release H1 FY26 (2026-02-24)
- Seven West Media H1 FY26 results (2026-02-11)
- ASX Release: Implementation of Scheme of Arrangement (2026-01-07)
- Seven West Media (2026-07-25)
- Sca Unveils World-Leading AdTech Innovation (2025-08-06)
- SCA 2025 Annual Report (2025-10-23)
- ARN Media Annual Report 2024 (2025-02-26)