Australia's Southern Cross Media lowers forecast, announces job cuts on weak ad market (updated)

Southern Cross Media

11/06/2026 01:46

Co plans to cut 250-300 jobs by end-June
Co cuts 2026 EBITDA and revenue forecasts
Shares fall 6.8%, hit lowest point since May 18
Adds analyst comment in paragraphs 3-4, share moves in 7
By Roshan Thomas

    June 11 (Reuters) - Australia's Southern Cross Media Group SXL.AX lowered its annual earnings forecast on Thursday and said it would cut 250 to 300 jobs by end-June, citing a weak advertising market and sending its shares down more than 6%.
Advertising market conditions softened more than expected in the fourth quarter, particularly in the television business, amid broader macroeconomic pressures, the media company said.
"Guidance downgrade and job cuts are a clear sign that the cost environment remains tough," said Tim Waterer, chief market analyst at KCM Trade.
"The management is clearly wielding the knife to protect the balance sheet - a painful but probably unavoidable move in today’s tough economic climate."
Southern Cross now expects A$185 million to A$190 million ($129.41 million to $132.91 million) in 2026 underlying earnings before interest, taxes, depreciation, and amortization (EBITDA), down from the A$200 million to A$220 million seen earlier.
The owner of television, radio and publishing assets also lowered its 2026 revenue forecast to A$1.86 billion-A$1.87 billion, down from its earlier estimate of A$1.91 billion to A$1.92 billion.
Shares of the company fell as much as 6.8% to A$0.550, their lowest level since mid‑May, while the benchmark S&P/ASX 200 index .AXJO was down 0.6%, as of 0100 GMT.
Southern Cross has launched a group-wide cost-reduction programme, which the company said together with merger-related synergies was expected to save A$145 million to A$150 million a year upon completion.
The company expects to take a restructuring charge of about A$20 million in 2026 from the programme.
Southern Cross had 1,264 total permanent employees, as of March 31, 2025.
Last year, Southern Cross Austereo, owner of the Triple M and Hit radio networks, merged with Seven West Media, which operates a free‑to‑air television network as well as The West Australian newspaper group.
        
($1 = 1.4296 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru; Editing by Subhranshu Sahu)
 ((Roshan.Thomas@thomsonreuters.com;))