Good cost saving too.
The annual report is likely to reveal a package less than Dobbo.
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From Radioinfo:
The AVW Groupâs Special Services Group (SSG) has recently completed the maintenance of satellite uplinks for Southern Cross Austereo.
Over the course of four days two 4.0m antennas were shut down, reflectors thoroughly cleaned, iBUC electronics overhauled and re-alignment checks completed before switching back on.
Read more here.
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Hogan has worked at SCA for 15 years.
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Sounds plausible for Gina to move for a significant reason such as having a baby, however, a GM leaving always unsettles some staff who feel that more cuts are coming.
Those days are really over with most control well beyond local GMs.
Gina began mid year in 2017, sheâd done her two years, perhaps enough she feels to have proved herself?
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Nothing to do with the fact mix94.5 has had a fairly shakey past two years in the ratings?
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Interesting choice when ratings wise, SCA arenât really doing all that well nationally.
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Who would you have picked instead? (Just out of curiosity)
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If only I could predict the winning Powerball numbers.
Southern Cross Media is Cheap & Ripe for a Buyer
Itâs only a matter of time before SCA is sold off (as Iâve previously predicted), itâs almost worthless as it is, a trade buyer, but more likely a private equity would buy it & split it all up, then re-sell all or some.
My prediction is, TV would be sold off to Metro Networks, 7 & 9 depending on current affiliation.
For Radio, Capital City (Metroâs) only, would go back to the way they were under the original Austereo Network & would be kept by the buyer.
Regional stations would be split into smaller networks (similar to BOG/SRN) & sold off, or split individually & sold if no network buyers could be found, with larger regional stations such as Newcastle, Gosford, Canberra, Gold Coast, & Hobart, would be sold individually as lone twin stations (no network).
I think this could start to happen by possibly the end of this year, likely end next year.
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I hope Bauer media buys them and replicates Absolute Radio on Triple M metro.
Their Hits network in the UK is pretty dire, but Magic and Kiss do well.
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Probably a good chance that Grant Broadcasters or BOG may buy some stations.
Also interesting how the shoe is seemingly now on the other foot, it wasnât all that long ago that SCA wanted to buy some BOG stations
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I personally think Nine would find the prospect of owning their Regional Queensland, Southern NSW/ACT and Victorian affiliates attractive, Seven might be interested in owning their extremely strong Tasmanian affiliate but I doubt the smaller remote markets would be of interest to either.
As for radio, I reckon thereâs a very small chance that SCAâs stations in the larger regional markets (Gold Coast, Newcastle, Gosford, Canberra & possibly Hobart) might stay as part of the same network as the metros. But other than that, I defintely agree with those who think we could see many SCA regional stations eventually going to Grant Broadcasters or SRN/BOG.
The metro SCA radio stations would probably benefit from new leadership, because I donât think either the Hit or Triple M Networks have been performing that well in most capital cities of late.
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SCA has agreed to buy Sevenâs WA radio stations and they supposedly are going to sell them off? Why bother agreeing to buy them?
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Theoretically youâd get more money for near-statewide coverage than their current coverage areas (which, granted, cover a number of the larger markets)
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I could see 2GO/Sea FM (now Triple M/Hit) being bought by Grant Broadcasters, as they currently donât own any stations in that market.
As for Newcastle, BOG already owns two stations, whilst Grantâs 2NM/Power FM Muswellbrook already has a 30%+ overlap within the Newcastle commercial radio licence area, so you could rule either of them out on owning KO/NX.
I agree. It would be interesting if SRN/BOG buys the SCA FM stations in Coffs Harbour, Port Macquarie & Orange, and sell off its AM stations to someone else. Probably Grant would buy them, so that SRN/BOG can keep the AM stations.
That was under the assumption that the Seven/Prime merger would go ahead, which of course hasnât occurred.
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I reckon Grants will buy the lot.
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I canât read the article due to the paywall so not exactly sure what the article says, but what reason would there be for splitting up the radio network?
The level of networking on those stations makes them very reliant on each other. At a regional level, the smaller stations benefit by having a lot of tasks undertaken by other stations/offices. Bringing those back in house would be financially unviable. For the larger stations, they benefit by being able to offset the costs of their staff by having them do the same task for multiple stations. Even at a metro level, they get a huge cost benefit by being able to include all the network stations on sponsorship and sales for their networked content.
I agree that TV is likely to be broken up and bought by the networks. If offered for sale Nine and Seven will basically the forced to buy to protect themselves from having to deal with a new owner that wonât be so generous in negotiations. Nine would take VIC, SNSW, QLD. Seven would take TAS & Darwin. Seven may be interested in the Remote & Central stations too. The JV stations would likely continue as is with the new owners. Nine are clearly happy owning half of 10 Darwin. Seven would likely follow suit. Spencer Gulf is a different proposition though serving up all 3 networks and not generating much revenue. My prediction would be that any areas not picked up by the networks would go to WIN. Bruce has cash and is always keen to expand his network.
I also predict that radio will stay together as one block, and be bought out by another operator. Bauer or Nine would be the likely options. Nine may be hesitant given the work and investment theyâve put into the ex-Macquarie network, but the SCA stations are possibly would give them a better national reach.
All the SCA assets would be a good buy for the right buyer. The problem with SCA isnât the profitability of their assets per say, but rather the level of debt they have is too high and cost them too much to service - which reduces the profitability of the whole group and limits their ability to invest in other areas. A buyer who can operate the assets with a lower level of debt will do well.
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Wasnât a paywall yesterday, but I canât read it now either, so maybe too many people reading it for free?
SCA followed the American Clear (cheap) Channel business model, & now itâs looking like a possibility to go down the same path & be bought by a private equity?
As with Clear Channel, the new owners sold off the TV & smaller radio market stations eventually as they had difficulty come to a price agreement because they too were near worthless, as Clear Channel had gutted them from their former selves.
Clear Channel as is SCA were/are too large & exposed to economic conditions like now with reduced advertising $
Clear Channel & SCA had/have a lot of debt & Clear Channel even after selling off the TV & smaller radio market stations, went bankrupt (which Chapter 11 in the US works differently to if SCA went bankrupt here).
As we know Clear Channel restructured & became what is now i-Heart Media (i-Heart Radio).
SCA currently has a lot of debt, they are too large & exposed to the weak economic conditions, they will either go broke if they donât change, or break the network up & sell some off, reducing that exposure/risk.
I canât see any other media companies buying it up as is, & if private equity buy it up, theyâll have to reduce the debt & exposure risk, they can do that by breaking it up & selling it off, itâd be worth more as little pieces/networks than a large one as a whole.
I doubt itâs changed, but I was told a few years ago by a reliable source that the lease on the Sydney SCA studios, cost more per year, than the income revenue Triple M & 2DAY were making, so in other words, the rest of the network was keeping SCA Sydney above water, have a few places like that & youâll sink pretty fast.
Another thing to note is, the worth of SCA is mostly in talent, BAI (Broadcast Australia) now owns all the SCA transmitters & some of the SCA transmitter sites (the others are leased from other entities), so anyone who buys SCA as it is now, or one/many of the radio or TV stations should they be split up, will have to build their own new transmission facilities, or come to a lease/buy back or maintenance/operations agreement with BAI, which is more cost to any buyers & less worth for SCA.
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SCAâs national head of sport sales Trevor Crook has been promoted to the newly created role of head of sport and partnerships.
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The sale of the Seven West regional radio stations in Western Australia to Southern Cross Media was completed on 31 December 2019.
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