Lets start a new thread to represent the newly merged SCA/SWM which as at time of writing, is still called Southern Cross Austereo
Today’s news
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About time 
My friend who is high up in SCA
Said he was a Dud!!
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Sorry, but… you’ve just Gottalove a media merger like this, haven’t you?
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Concerning to see SCA’s radio mitts taking over the politics. May just end up being SCA Take 2 with how they ran their tv assets into the ground.
Tim Burrows at Mumbrella suggesting this could be the new company wanting to adopt SCA’s culture, rather than SWM’s.
While Nine Newspapers’ Calum Jaspan’s article noted Seven’s note to investors weeks ago, mentioning the poor advertising market and loss of revenue from the Ashes cricket in Perth and Melbourne. As well as the new company losing $100m in worth from projections 6 months ago when first announced.
Big media corporate news for sure, a shock, but when you think about it not totally surprising really. They really need someone like NEC have had, such as Marks, but of course now leading the ABC. Not sure what Warburton’s contract at Supercars is like, but wonder if he’d consider a return with the new ownership and board? He did make significant in-roads following Tim Worner’s disastrous end after 2019 and steering during COVID, including some good TV performances.
Will be interesting to see over coming months how the old Austereo side of the business view Seven and how they’ll handle their immediate future. Obviously some operational and performance problems, not just broader advertising market and Nine’s summer/Q1 dominance this year, but the continued runaway smash hits in Married and Block which Seven still struggle to have answers to, plus the weakened state of Seven Sport and an exorbitant AFL deal and no Saturday games which has also seen audiences under the new VOZ system often trail Nine’s NRL (not seen since 2012-2015).
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They’ll be viewing it from above as they swing relentless blows upon it with their axe no doubt.
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Wonder if SCA’s bean counters will be going through Seven stars’ contracts/salaries and fly them down to Moray St HQ in South Melbourne for friendly ‘chats’.
I’d be slightly concerned for some people at Eveleigh, not suggesting ‘Shirvo’ & Co would be shaking at tonight’s news, but these sorts of moves always spell further shock calls down the track.
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Shirvo himself would be OK, he’s got a job at one of the NRL clubs, plus there are other ways he can earn a little dough through certain assets. 
In either company’s case…that’s not chocolate… 
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There are whispers in the Eveleigh corridors of a bloodbath looming. Jodi Lee’s departure last week is seen as a sign of what’s to come.
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I can see it happening to be honest.
Surely Sonia Krugers 1million $ contract isn’t worth it now for the one show that she does
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The real headline here is Toby Potter being placed into a transformation lead role. A really well-liked and respected guy, but also the one behind the recent ‘transformation’ (mass job slashing) that saw big cuts at SCA pre-merger. He was brought back into the fold explicitly for that purpose.
Expect lots of headlines to come of departing talent and office roles, especially from the former Seven side…
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Southern Cross has revealed its first results since the merger with Seven West Media.
It suspended its interim dividend. Underlying net profit rose to $12.8 million.
Update
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Kevin Perry at TV Blackbox with some more insight and thoughts, also echoing basically what was said in the Mumbrella and SMH articles, as well as some members here:
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I wonder how much if any of Seven Melbourne and their brand new studios/offices may be affected shortly? Or whether any cuts will mainly come out of Sydney? Also other stations across Australia too, including regional now of course as well.
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Almost like it made no sense for SCA to buy out SWM and have Seven’s people in charge.
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All together now…
SCA’s audio gains wiped out by Seven’s performance
Video killed the radio star in the first half-yearly results presentation for the newly merged Southern Cross Austereo and Seven West Media, as a strong six months in audio were more than wiped out by Seven’s lacklustre performance.
The combined group posted revenue of $792.2 million, representing a 2.7% drop. EBITDA of $66.9m was down 28.7%, while net profit after tax fell by 42.2% to $21.9m.
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It’s incredible that the value of the merged company has already reduced by $100million since the merger was announced.
It looks like the real issue is with the TV advertising market and the cost of the AFL rights deal, on top of the reduced ashes games in Perth and Melbourne.
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Analysis by The Age/SMH business writer Elizabeth Knight
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