UPDATE: Southern Cross Austereo (SCA) CEO John Kelly has confirmed that discussions about a potential sale to Nine Entertainment Co. (NEC) are underway, igniting speculation in the media landscape. Reports indicate that NEC may leverage some of the $3 billion it gained from its recent Domain divestment to pursue SCA.
During a press interaction earlier today, Kelly acknowledged internal conversations among SCA’s board but refrained from providing specific details. When pressed by Mediaweek on whether SCA is for sale, he stated, “I’m not going to answer that question directly, but we have been saying for some time now that our board believes in media consolidation. If the right offer comes for our shareholders, we’d certainly consider it.”
Should NEC move forward with an acquisition, it will face significant regulatory challenges due to the Broadcasting Services Act, which restricts ownership to two commercial radio licenses in a single market. NEC currently operates five talk-based AM stations across major Australian cities. To integrate SCA’s extensive network of 99 stations, NEC would first need to divest its existing stations to comply with media diversity laws.
This potential acquisition comes as SCA has demonstrated remarkable financial growth. In its full-year results for the period ending 30 June 2025, SCA reported total revenue of $421.9 million, marking a 5% increase year-on-year. Notably, the company’s net profit surged to $15.1 million, a significant rise from $4.5 million the previous year.
The transformation of SCA into a digitally-focused media entity has garnered attention, with Kelly asserting, “We’ve done that now.” The digital division’s revenue soared to $45.1 million, driven by the success of the LiSTNR platform, which turned around from a $10.9 million loss to a profit of $2 million EBITDA.
Looking forward, SCA projects revenue between $435 million and $440 million for FY26, alongside an EBITDA forecast of $78 million to $83 million. Kelly expressed confidence in their strategy, stating, “Not many companies are out there giving the level of guidance we are for FY26. We feel pretty confident about where we are as a company.”
As discussions unfold, the media industry is closely watching for developments that could alter the competitive landscape. The implications of a potential NEC acquisition of SCA could reshape Australia’s audio market and redefine the media consolidation narrative.
Stay tuned for further updates on this developing story, as it could have significant implications for shareholders and the broader media landscape.
