Southern Cross Media suffered a 17 per cent drop in profit in its first result since merging with Kerry Stokes’ Seven West Media, even as the newly combined group reported diverging fortunes across its portfolio.
Southern Cross Media Group (SCA) and Seven West Media (SWM) delivered strong earnings growth in audio and rapid audience gains in streaming, while television profits continued to decline, underscoring the uneven performance across the merged business.
The data
Seven outperformed a declining free-to-air advertising market in the first half, with total TV revenue down 2.7% compared to an estimated market contraction of around 10%. However, earnings still fell sharply, with Seven’s EBITDA down 28.7% for the period.
The result underscores the structural pressure facing linear television. While broadcast TV remains profitable, earnings are increasingly fragile as advertising markets soften and audience shifts accelerate.
By contrast, SCA’s audio division delivered revenue growth in a declining metro radio market, indicating market share gains. Broadcast radio margins improved to 27.5%, reflecting the impact of cost-out programs alongside modest top-line growth.
The combination of revenue growth and disciplined expense management drove disproportionate profit gains in audio, positioning the division as the group’s strongest earnings contributor in the half.
Streaming platforms also recorded strong top-line momentum.
Seven’s 7plus reported revenue growth of 15%, with audience growth of 55% and streaming minutes up 62%.
SCA’s digital audio platform LiSTNR lifted revenue 14% and generated positive EBITDA of $2.8 million, compared to near breakeven in the prior corresponding period.
During today’s earnings call, competition in the digital audio market was raised directly. Lulwah Al Saleh, Executive Director of Wealth Management at UBS Saudi Arabia, questioned SCA CEO John Kelly about the current disruption in the space, particularly amid Spotify’s expansion into video podcasts.
In relation to LiSTNR, Saleh asked: “How are you thinking about the constant step up in competition for your listener and the risk of continued reinvestment into the tech stack?”
Kelly said the newly merged group would provide greater distribution leverage.
“LiSTNR is an owned and operated property. And we can pivot and develop LiSTNR to meet the needs of advertisers. But we’re also very excited about using seven plus as potentially a video distribution tool moving forward, which with 15 million signed up listeners of viewers into seven plus, that’s a huge opportunity to expand that two and a half million sign-up base for Listener.”
The question reflects broader shifts in audience behaviour.
Recent data from PodPoll 25, conducted by Deadset Studios and analytics firm Insightfully, shows audiences are increasingly moving away from traditional podcast apps and towards streaming platforms. The nationally representative survey of 3,768 Australians aged 15 and over found Spotify is now the leading podcast platform, used by 58% of respondents. Apple Podcasts has fallen to just one in five listeners.
YouTube has seen the largest rise, with 44% of listeners saying they use the platform for podcasts, up from 30% in 2024. Younger audiences in particular are gravitating toward video podcasts, strengthening YouTube’s foothold in the sector.
However, despite LiSTNR’s rapid growth, digital remains insufficient to fully offset declines in broadcast television earnings. Seven’s total EBITDA fell 28.7%, reflecting the continued weight of linear TV within the earnings mix.
Heith Mackay-Cruise
CEO steps down as board accelerates strategy
The results were delivered alongside a leadership reset.
Late yesterday, the company confirmed Managing Director and CEO Jeff Howard would step down, with Chairman Heith Mackay-Cruise moving into an expanded operational role as Interim Executive Chairman.
Opening this morning’s earnings call, Mackay-Cruise addressed the leadership change.
“The board recognises these announcements are significant. But in our view, following a period of major change, our two market-leading companies successfully merged to form a major media platform company. The changes we have announced are intended to accelerate the delivery of our strategy and position the company to move more quickly and realise the benefits of our merger. This will include accelerating initiatives to drive revenue and cost synergies, and to create new solutions for SCA customers, including through innovative use of data.”
During the call, Morningstar Australia’s Director of Equity Research, Brian Han, asked whether the management changes reflected “an untenable disagreement on how to integrate the merger or the future vision of how TV and radio businesses will go together” and whether bringing in a new management team was the only way to execute that strategy.
MacKay-Cruise’s response was brief and direct: “Yes”.
Taken together, the half-year results and executive reshuffle underline the scale of transformation underway. Audio is currently driving earnings growth. Streaming is expanding rapidly. Television remains profitable but under structural pressure.