Australia’s Southern Cross Media Group, the newly merged entity created from the combination of Kerry Stokes’ Seven West Media and the original Southern Cross radio business, has delivered a disappointing first full-year financial result, posting a net after-tax loss and a dramatic slump in underlying profits against a challenging economic backdrop.
The combined media group, whose portfolio includes major assets such as *The West Australian* newspaper and the nationally popular Triple M radio network, recorded a statutory net after-tax loss of $3.8 million for the 2026 fiscal year. On a pro forma basis, which normalises results to reflect the merged structure for comparison with the prior year, net after-tax profit came in at $9.9 million — a 57.6% nosedive from 2025 levels.
The result revealed stark divergence across the group’s three core divisions, with steep declines in television performance partially offset by resilient growth in the audio (radio and digital) segment. Immediately following the release of the results, the group’s shares traded 1.83% lower on opening, falling to $0.54 apiece.
The television division bore the brunt of the downturn, driven by a widespread contraction in free-to-air advertising spending that fell 9.9% across the full year, with market conditions deteriorating sharply in the final fourth quarter. When combined with $13 million in writedowns on existing television content contracts, the television division finished the period in the red.
In contrast, the group’s audio division posted solid gains that helped soften the broader financial decline. Total audio revenue climbed 1.4% year-on-year to reach $429.9 million, with double-digit growth in digital audio revenue hitting $6.5 million, enough to counteract softness in traditional advertising for both metropolitan and regional radio broadcasting.
The group’s publishing division also faced headwinds, with total revenue slipping 3.1% to $187 million as advertising revenue contracted and subscription revenue stayed flat compared to the prior year. Across all divisions, Southern Cross reported total annual revenue of $1.9 billion, representing a 4.5% decline from the previous year. Weaker advertising markets across all segments delivered a $125 million hit to the group’s top line.
Despite the weak headline financial results, company executives highlighted bright spots in audience and digital growth. Southern Cross noted that it expanded total audience reach across its television and audio platforms over the fiscal year, with digital revenue across key platforms including 7plus, Listnr, and *The Nightly* delivering double-digit annual growth.
Rohan Lund, who was appointed chief executive officer of Southern Cross in May 2025, acknowledged the challenging trading environment that shaped the full-year result. “Trading conditions were difficult, particularly in television through Q4, and revenue came in below where we expected,” Lund said in a statement accompanying the results. “Share gains and cost discipline partially offset that, and EBITDA finished above our revised guidance.”
Lund struck an optimistic tone about the merged group’s long-term position, noting that the newly combined business now reaches more than 20 million Australian consumers each month. “Each of our three businesses – television, audio and publishing – strengthened its market position during FY26,” he added. “While we expect conditions to stay subdued, our focus doesn’t change: bring Australians together through content they love and trust, turn that connection into audiences that work for advertisers and run the business with discipline and unity.”