Southern Cross Media Group (ASX: SXL) delivered its first half-year results as a merged entity on 24th February 2026, presenting a divided picture: a radio business firing on all cylinders, sitting alongside a television operation weighed down by a softening ad market.
But before the numbers even hit the ASX, a bombshell landed. CEO Jeff Howard – who had led the combined group after the Southern Cross and Seven West Media merger – resigned effective immediately on 23rd February 2026, the evening before the results presentation.
The timing raised eyebrows. And the numbers that followed gave investors plenty to digest.
A Tale of Two Businesses
The newly merged multimedia group reported pro forma group revenue of $1,023.8 million for the six months ending 31st December 2025, down 1.5% on the prior corresponding period.
Pro forma EBITDA fell 14.4% to $106.9 million. Group expenses edged slightly higher year-on-year to $901.2 million. No interim dividend was declared, with management directing focus toward debt reduction.
The divergence between audio and television performance was stark:
- Audio (SCA radio): Revenue up 3.2% to $216.5 million; EBITDA up 28.2%; net profit after tax up 252%
- Television (Seven West Media): Revenue down 2.1% to $712 million; EBITDA down 27% to $67 million
- Pro forma net debt: $338 million, reduced by $16 million over the period
Key H1 FY26 Snapshot of Southern Cross Media Group
Radio: The Clear Standout
Southern Cross Austereo’s audio business delivered a standout H1 FY26, continuing a growth trajectory that has now seen audio EBITDA compound at 15% annually from FY24 through FY26.
Metro radio market share climbed to 29.8%, up 2.3 percentage points year-on-year. That gain came alongside disciplined cost management, with non-revenue related costs falling 2% despite inflationary pressures.
Digital audio also turned a corner. LiSTNR, SCA’s streaming and podcast platform, posted EBITDA of $2.8 million for the half – up $2.7 million on the same period a year earlier – after reaching breakeven in FY25. Digital revenue grew 14% to $25.2 million, driven by 23% growth in owned InStream revenue.
LiSTNR now claims 2.5 million signed-up users and over 48% market share as Australia’s leading podcast sales network. Daily active users grew 26% to 551,000.
TV: A Tougher Story
Seven West Media’s television operations bore the brunt of a challenging advertising environment. The weaker-than-expected ad market in November and December 2025, compounded by shortened Ashes Test broadcasts in Perth and Melbourne, cut into revenue projections.
Despite audience gains – total TV audiences rose 3.4% overall and 4.7% in the key 25-to-54 demographic – translating those eyeballs into ad dollars proved difficult.
Seven’s total TV revenue share did reach a record 44.1% for the half. And 7plus, its BVOD platform, continued to grow strongly:
- Advertising revenue up 15%
- Daily active users up 26%
- Streaming minutes up 62%
Still, Seven’s EBITDA of $67 million for H1 FY26 marked the lowest first-half result the business has recorded.
CEO Departure Puts Spotlight on Execution
Interim Executive Chairman Heith Mackay-Cruise addressed Howard’s departure at the investor briefing, framing it as a change in execution rather than strategy.
“First and foremost, the strategic intent of bringing these two businesses together to create a multimedia platform offering still holds true today,” Mackay-Cruise said.
John Kelly, who previously served as SCA’s CEO and Managing Director, stepped into the interim CEO role for TV and Audio. Toby Potter was named Chief Transformation Officer.
The board confirmed it is moving quickly to name a permanent CEO, with the merged group’s integration work described as still in its early stages.
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What Comes Next
Management outlined $20 million in additional savings planned for the second half of FY26, with a further $30 million earmarked for FY27.
Full-year guidance for FY26 targets pro forma group revenue of $1.91 billion to $1.92 billion, with underlying earnings of $200 million to $220 million. Cross-promotion between Seven and LiSTNR is expected to accelerate digital audio growth in H2.
Mackay-Cruise pointed to the group’s national scale as a competitive advantage going forward. “Together, we reach Australians at scale at a national, regional and local level across our key content platforms of audio, television, streaming, publishing and digital,” he said.
SXL One-year Price Chart [ASX]
SXL shares edged 0.76% higher to $0.665 following the announcement, as investors weighed the audio strength against the television headwinds and leadership uncertainty.
