Executive Summary 

Southern Cross Austereo (SCA) recently announced its full-year results for FY25, showcasing a significant financial turnaround driven by strategic initiatives, particularly in its digital audio segment. 

The SCA share price has languished in recent years, as traditional media stocks wilted under the decline of ad spending that accompanied the 2023/24 economic slowdown. SCA was also weighed down by its underperforming regional TV assets, which lacked a BVOD offer and had no growth.

But with the recently completed sale of its TV assets to Ten and Seven, SCA is now focussed on its “all audio” strategy. And it is now strongly positioned to grow revenue and profit. The main driver is its streaming and podcasting LiSTNR service, but broadcast advertising is bouncing back too. Importantly, LiSTNR is now EBITDA positive, and will become a bigger contributor to profit over time.

We forecast continued growth in digital audio for the audio industry in Australia, with 30% CAGR growth for total digital radio revenue to 2028. As the value of SCA’s digital business has become apparent, chatter about an acquisition has risen.