Southern Cross rules out merger with Nine

A MERGER between Southern Cross Austereo and affiliate partner Nine Entertainment won’t be on the cards even if the federal government’s media reforms get through the Senate.

That’s the word from Southern Cross, which switched affiliation from the Ten Network to Nine in 2016 in a $500 million deal that has helped it lift full-year profit 40.5 per cent to $108.6 million.

Southern Cross chief Grant Blackley yesterday said his company was not looking to increase its share of earnings from television beyond its current 20 per cent.

“We have a skill set predominantly focused on audio assets that is continuing to emerge through our podcasting business and digital radio business,” Mr Blackley said.

Southern Cross beat its revised 2017 earnings guidance and lifted profit, helped by the government’s move to abolish broadcast licence fees.

The company, which operates Triple M and Hit Network radio stations and has a regional TV affiliation with Nine, reported a 7.4 per cent revenue increase for the year to June and said that it had saved $10.9 million from one-off items including the licence fee abolition.

The company in May had warned that full-year earnings would be lower than last year’s $168 million, but earnings before interest, tax, depreciation and amortisation came in at $177.4 million – up 5.8 per cent and just inside its initial guidance range issued in December.

Southern Cross shares yesterday closed flat at $1.32.