Merged media group upbeat despite CEO tapping out
The media giant, which emerged from the merger of Southern Cross Austereo and Seven West Media, aims to save at least $30 million while searching for a new boss.
As Southern Cross Media completed its de facto takeover of Seven West in January, Seven’s former chairman has moved to take the reins of the new organisation.
But Jeff Howard resigned as CEO and chief executive “effective immediately” on Monday evening, a day before the company announced its first-half results on Tuesday.
Mayor Heith Mackay-Cruise, who took over from WA billionaire Kerry Stokes after he left office on Friday, will be interim chief executive.
When a global search for a new CEO begins, all internal leaders will report to him.
The Southern Cross organization uses Network Seven and The West Australian print and digital assets to work with the Triple M and Hit radio networks, the Listnr app and podcast network, and regional radio stations.
Mr Mackay-Cruise said on Tuesday that the new business had already secured merger benefits, particularly through cross-promotion, as TV accelerated growth in audio and digital audiences.
“We also identified an early opportunity in regional markets where customer overlap between television and audio represents new business growth across both platforms,” he said.
“We are targeting cost synergies of at least $30 million and expect to realize them in fiscal 2027.”
Southern Cross’s voice business posted underlying earnings of $40 million before interest, tax, depreciation and amortization, up 28 percent from the previous first half.
TV and broadcasting assets posted underlying earnings of $67 million, down 27 per cent, as previously announced in February by SGH, the conglomerate controlled by former majority owner the Stokes family.
Southern Cross is targeting pro-forma group revenue of $1.91-1.92 billion and underlying group earnings of $200-220 million for the 2025/26 financial year.
“Together, we are reaching Australians nationally, regionally and locally across our core content platforms – audio, television, broadcast, broadcast and digital,” Mr Mackay-Cruise said.
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