Southern Cross Media Group Limited (SCA) has announced its financial results for the six months ended 31 December 2023, balancing a slight dip in revenue and much greater drop in EBITDA and net profits with $30 million in annualised savings off the back of a strategic cost management review.

The ASX-listed media company reported $252.6m in revenue for the first half of FY24, down 2.9 per cent year-on-year. EBITDA was also down 32.5% to $29.1m, with reported EBITDA sitting at $29.1m, while net profit sat at $4.4m, a 71.1% drop on H1Fy23.

Against this, SCA noted $30 million in annualised savings thanks to strategic cost management review, double previous guidance of $15 million. The full benefit of these savings will be realised in FY25, with $20 million to be realised during FY24, predominantly in the second half.

Among the highlights of the first half for the group were SCA's LiSTNR digital audio ecosystem, which it said remained on target to reach a breakeven EBITDA run rate in Q4 FY24 and to contribute positively to EBITDA from FY25. LiSTNR is also forecast to become cash flow positive in early 2025. SCA and the Consortium (ARN Media and Anchorage Capital Partners) are in active discussions to determine whether the Consortium’s non-binding indicative proposal is in the interests of shareholders.

Year-on-year, LiSTNR users have risen 60% to 1.8 million, and the company noted several major enhancements to improve the user experience - something its executive team believe will help with ongoign growth in the number of signed-up users and time spent on the platform.

Overall, SCA's audio revenue of $199.6m was flat compared with H1 FY23, and SCA said the ad markets remain challenging even as SCA broadcast radio revenues track ahead of the market. This included growth of 2.0% in Regional Radio and 27% in Digital Audio, offsetting a decline of 2.2% in Metro Radio.

SCA’s Triple M and Hit networks finished 2023 with the largest Metro audiences in their respective target demographics of Men 25-54 and Women 25-54, while SCA’s Regional Radio network is Australia’s largest. Nine million Australians tuned into our radio stations in 2023, the media group continued.

With a monetisable audience of over 8 million monthly listeners, a 17% increase in stream starts and 7% growth in listening hours, LiSTNR has strong revenue momentum (30% CAGR), and remains on target to reach an EBITDA breakeven run rate during Q4 FY24 and to contribute positively in FY25.

"SCA maintained and expanded monetisable audiences to record levels in our core radio and digital audio markets during the period. Importantly, our national leadership in the core buying demographics of men and women aged 25 to 54 provides our sales teams with a platform for growth in the second half and beyond," said CEO of SCA, John Kelly.

"The impact of lower industry-wide national advertising expenditure was mitigated by the geographic diversity of SCA’s radio portfolio comprising 10 stations in Metro markets and 78 in Regional markets. Fuelled by robust performance from local advertisers, Regional Radio revenues grew by 2.0%."

Kelly also took the opportunity to stress LiSTNR's position in market.

"LiSTNR’s monetisable podcast audience network of around 7.4 million monthly listeners is the largest in the Australian Podcast Ranker. Together with strong growth in our streaming audiences, this continues to drive consideration by media buyers and programmatic advertisers. Digital audio revenue of $15.6 million was an impressive 27% higher than in the prior corresponding period," Kelly said.