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Southern Cross Media Group Limited (ASX:SXL)

ALERT: Price-sensitive ASX Announcement for SXL
Current share price for SXL : $0.518 -0.073 (-12.29%)+
Announcement
Release
11 Jun 2026 8:32AM
Price at Release
$0.590
Full Release
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Summary
Southern Cross Media Group Limited has announced a trading update for FY26, highlighting a revised EBITDA expectation and a significant cost reduction program. The company now expects an underlying EBITDA of $185 to $190 million, lower than the previously forecasted range, due to challenging market conditions, particularly in the TV segment. The cost reduction program aims to remove redundancies and streamline operations, resulting in an expected annual benefit of $145 to $150 million. This involves a reduction of 250 to 300 full-time equivalents. Additionally, an onerous contract provision is set between $65 to $70 million, reflecting adjustments in legacy TV content contracts due to adverse market conditions. The changes will lead to a restructuring charge of approximately $20 million for FY26.
Key Points
  • FY26 underlying EBITDA expected to be $185 to $190 million.
  • Significant cost reduction program announced, targeting $145 to $150 million in annual run-rate benefits.
  • 250 to 300 full-time equivalents to be reduced by 30 June 2026.
  • Restructuring charge of around $20 million expected in FY26.
  • Onerous contract provision of $65 to $70 million due to legacy TV content contract adjustments.
  • Market conditions deteriorated, impacting revenue expectations.
  • Reported EBITDA expected to benefit by $5 million in FY26 and $30 million in FY27 due to provisions.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.