Southern Cross Media, the business created from the merger of Kerry Stokes’ Seven West and radio group Southern Cross, announced a financial loss for the 2025 financial year due to deteriorating market conditions.
The group, which owns the Seven Network, West Australian newspaper and Triple M network, said revenue dropped across television, newspapers and radio.
Combined with writedowns of TV contracts it produced a $13 million loss. Revenue more than doubled to $1.1 billion reflecting the inclusion of TV revenues post-merger. Underlying revenue for the group contracted 4.5 per cent year-on-year.
“These are the first full-year results of our merged business. We now reach more than 20 million Australians a month, and each of our three businesses — Television, Audio and Publishing — strengthened its market position during FY26,” Southern Cross chief executive Rohan Lund, said.
“Trading conditions were difficult, particularly in television through Q4, and revenue came in below where we expected. Share gains and cost discipline partially offset that, and EBITDA (earnings before interest, tax, depreciation and amortisation) finished above our revised guidance.”
Lund expects conditions to stay subdued this financial year.
The group said television revenue was tracking flat year-on-year, audio revenue is up low single digits while publishing revenue is stable year-on-year.
“The advertising market remains short and volatile with consumer and advertiser sentiment variable,” it said.
In June, The company commenced another significant cost reduction program to deliver annual run-rate cost reductions of up to $150 million – largely from the loss of 250 to 300 jobs which will mostly be from the TV side of the business.
“We must reset our cost base to meet current market conditions and capture the full benefits of scale across our trusted platforms for our audiences and advertisers, now and into the future,” Lund said at the time.
Southern Cross also announced $65 million to $70 million in writedowns of legacy TV content contracts which have not delivered the commercial benefits expected.
It was not the only drama in the group’s year. In May, Australia’s richest person Gina Rinehart emerged as the money behind former Stokes ally Bruce McWilliam’s near-10 per cent stake in Southern Cross.
The news sparked speculation the pair might be planning an eventual takeover of the media company.
More to come
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Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.
