Southern Cross Media Group Limited (SXL) AI Stock Analysis

• Market Cap: AU$155.93M
• Dividend Yield: 1.66%
• Average Volume (3M): 197.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -7.85%
• EPS Growth: -3088.82%
• Country: AU
• Employees: 2,500
• Sector: Communication Services
• Sector Strength: 87
• Industry: Entertainment
• EPS (TTM): -0.94
• Shares Outstanding: 239,899,150
• 10 Day Avg. Volume: 200,839
• 30 Day Avg. Volume: 197,671
• PEG Ratio: 1.70
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.89
• Price Target Upside: 36.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: AU$0.50 ▼(-23.08%Downside)

Southern Cross Media Group Limited faces significant financial challenges, with declining revenues and profitability. Technical analysis shows neutral momentum, but valuation metrics are weak due to negative earnings and no dividend yield. These factors result in a cautious overall score of 55.

Southern Cross Media Group Limited Business Overview & Revenue Model

Company Description

Southern Cross Media Group Limited (SXL) is an Australian media company that operates a portfolio of radio, television, and digital assets. The company is primarily engaged in broadcasting services across regional and metropolitan Australia. It owns and operates the Southern Cross Austereo network, which includes popular radio stations such as Hit Network and Triple M, and provides television content through affiliations with major networks. Additionally, SXL offers digital audio and podcasting services, expanding its reach through digital platforms.

How the Company Makes Money

Southern Cross Media Group Limited (SXL) generates revenue primarily through advertising sales across its various media platforms, including radio, television, and digital. The company earns income by selling advertising slots to businesses looking to reach audiences through its network of radio stations and television channels. SXL's digital audio and podcasting services also contribute to its revenue by offering targeted advertising opportunities. Key revenue streams include direct advertisements, sponsorships, and partnerships with content creators and distributors. The company benefits from its strong market presence and strategic affiliations with larger networks, which enhance its content offerings and attract advertisers.

Southern Cross Media Group Limited Financial Statement Overview

Summary

Southern Cross Media Group Limited faces financial challenges marked by declining revenues and negative net income. The balance sheet shows increased leverage with a debt-to-equity ratio of 1.21, while cash flow remains positive but indicates profitability issues. Overall, there's a need for strategic adjustments to enhance financial health.

Income Statement

Southern Cross Media Group Limited has faced declining revenues over recent years, with a 0.96% decrease in the most recent period. The gross profit margin has also decreased from previous years, indicating pressure on cost management. Net income has turned negative, leading to a negative net profit margin, which is concerning. Additionally, the EBIT and EBITDA margins have deteriorated, suggesting operational and profitability challenges.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio that has increased over the years, currently standing at 1.21, indicating a higher reliance on debt financing. The return on equity has turned negative due to the net loss, which is a concern for shareholders. However, the equity ratio of 29.29% suggests some level of balance sheet stability, though declining over time.

Cash Flow

The cash flow situation shows some strength with positive free cash flow, though the growth rate is negative compared to previous periods. The operating cash flow to net income ratio is high due to negative net income, suggesting cash generation from operations is better than profitability metrics imply. The free cash flow to net income ratio also reflects this but indicates the need for improved profitability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
457.79M	499.12M	503.95M	524.55M	528.30M	539.17M
	Gross Profit
118.38M	134.50M	145.57M	162.34M	149.12M	207.90M
	EBIT
47.39M	21.25M	41.75M	50.96M	51.14M	69.39M
	EBITDA
36.50M	-270.64M	73.63M	-166.76M	126.55M	102.13M
	Net Income Common Stockholders
-224.44M	-224.60M	19.11M	-153.72M	48.10M	25.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.10M	10.54M	12.96M	49.46M	75.42M	271.43M
	Total Assets
692.11M	692.32M	1.03B	1.07B	1.33B	1.55B
	Total Debt
243.53M	245.82M	247.28M	253.76M	240.19M	534.65M
	Net Debt
218.43M	235.28M	234.32M	204.30M	164.77M	413.22M
	Total Liabilities
486.03M	489.48M	594.40M	610.92M	684.32M	959.35M
	Stockholders Equity
206.07M	202.84M	435.15M	460.41M	642.52M	588.10M
Cash Flow		Free Cash Flow
40.38M	18.71M	21.33M	13.70M	83.21M	64.78M
	Operating Cash Flow
42.16M	21.70M	46.12M	43.60M	97.16M	81.99M
	Investing Cash Flow
-4.90M	-8.16M	-21.51M	-30.99M	-11.96M	-43.49M
	Financing Cash Flow
-33.95M	-28.74M	-61.11M	-38.57M	-281.20M	200.55M

Southern Cross Media Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SXL, the sentiment is Negative. The current price of 0.65 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.67, and above the 200-day MA of 0.60, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.33 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SXL.

Southern Cross Media Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXT	74 Outperform		12.20	8.49%	8.60%	7.68%	-8.60%
NEC	67 Neutral	AU$2.58B	28.20	5.56%	4.29%	-0.92%	-3.83%
SWM	65 Neutral	€223.18M	25.45	1.98%	―	-6.10%	-90.04%
ASX	62 Neutral	$13.19B	27.01	13.33%	3.28%	9.70%	2.64%
Sector *	61 Neutral	$14.74B	5.97	-3.99%	6.57%	2.79%	-32.84%
SXL	55 Neutral	AU$155.93M	―	-71.41%	1.66%	-7.85%	-3088.82%

Southern Cross Media Group Limited Corporate Events

Sandon Capital Increases Stake in Southern Cross Media

Sandon Capital Pty Ltd, a substantial holder in Southern Cross Media Group Limited, has increased its voting power from 5.1% to 6.1% through on-market purchases. This change in shareholding indicates Sandon Capital’s growing influence in the company, which could impact its strategic decisions and potentially affect other stakeholders.

The most recent analyst rating on (AU:SXL) stock is a Sell with a A$0.50 price target. To see the full list of analyst forecasts on Southern Cross Media Group Limited stock, see the AU:SXL Stock Forecast page.

Ubique Asset Management Reduces Stake in Southern Cross Media

Ubique Asset Management Pty Ltd has reduced its stake in Southern Cross Media Group Limited from 9.75% to 7.17%, according to a recent change in substantial holding notice. This reduction in voting power, achieved through on-market trading and client transfers, may impact the company’s shareholder dynamics and influence within the media industry.

The most recent analyst rating on (AU:SXL) stock is a Sell with a A$0.50 price target. To see the full list of analyst forecasts on Southern Cross Media Group Limited stock, see the AU:SXL Stock Forecast page.

Southern Cross Media Faces Boardroom Challenge Amid Voting Restrictions

Southern Cross Media Group Limited has received a request from Sandon Capital Pty Ltd to vary final orders that restrict ARN Media Limited from voting a portion of SCA shares. Sandon Capital intends to propose resolutions to remove certain directors at the next general meeting and seeks permission for the relevant shares to be voted on these resolutions, potentially impacting the company’s governance and shareholder dynamics.

The most recent analyst rating on (AU:SXL) stock is a Sell with a A$0.50 price target. To see the full list of analyst forecasts on Southern Cross Media Group Limited stock, see the AU:SXL Stock Forecast page.

Southern Cross Media Faces Board Challenge Amid Strong Performance

Southern Cross Media Group Limited (SCA) has received notices from Sandon Capital, which intends to propose the removal of several directors at the next general meeting. However, major shareholders, representing over 50% of the voting capital, support the current board and plan to vote against these resolutions. SCA has reported strong financial performance, with audio revenues growing by 9% and plans to resume dividends. The company has also finalized a deal to sell its remaining television assets to Seven West Media. SCA considers the proposed resolutions by Sandon Capital as a distraction and urges them to withdraw their notice.

Pinnacle Increases Stake in Southern Cross Media

Pinnacle Investment Management Group Limited has increased its stake in Southern Cross Media Group Limited, raising its voting power from 6.47% to 8.08%. This change in substantial holding indicates Pinnacle’s growing interest and influence in the company, potentially impacting Southern Cross Media’s strategic decisions and market positioning.

Southern Cross Media Group Launches New Executive Incentive Scheme

Southern Cross Media Group Limited has announced a new Executive Incentive Scheme (EIS) effective from July 2025, designed to better align senior executive incentives with investor objectives. The scheme introduces separate short-term and long-term incentive components, with the latter focusing on total shareholder returns and share price targets significantly above current levels. This strategic shift aims to enhance shareholder value and includes provisions for change of control, reflecting a commitment to aligning executive performance with shareholder interests.

Southern Cross Media Announces Strong Revenue Growth and Dividend Resumption

Southern Cross Media Group Limited has announced a strong start to 2025 with a 9% increase in audio revenues, surpassing previous guidance. The company has maintained cost discipline, forecasting non-revenue related costs to be $265 million for FY25, which is below the previous year’s costs. This financial performance has led to the decision to resume dividends with the final dividend for FY25, reflecting the company’s improved operational momentum and financial stability.

Southern Cross Media Sells Remaining TV Assets to Seven West Media

Southern Cross Media Group Limited has announced the sale of its remaining television assets to Seven West Media, marking its complete exit from the television sector in line with its ‘All About Audio’ strategy. The transaction, valued at $3.75 million upfront and estimated between $19 to $24 million in total, will help SCA reduce its net debt and focus on its core audio business, potentially strengthening its market position and operational focus.

Sandon Capital Acquires Substantial Stake in Southern Cross Media

Sandon Capital Pty Ltd has become a substantial holder in Southern Cross Media Group Limited, acquiring a 5.05% voting power through its investment management activities. This development may influence the company’s strategic decisions and potentially impact its market positioning, reflecting Sandon Capital’s interest in actively engaging with the company’s future direction.

Southern Cross Media Director Acquires Significant Shareholding

Southern Cross Media Group Limited announced a change in the director’s interest, with Director Marina Simone Go acquiring 50,000 fully paid ordinary shares through an on-market trade valued at $33,000. This acquisition reflects a significant personal investment by the director, potentially indicating confidence in the company’s future performance and stability, which may positively influence stakeholder perception and market positioning.

Hamish & Andy Extend Exclusive Podcast Partnership with Southern Cross Media

Southern Cross Media Group Limited has announced that popular Australian podcasters Hamish & Andy have signed an early long-term extension to remain exclusive to the LiSTNR network. This partnership highlights the duo’s significant impact on SCA’s success, as their podcast consistently ranks as one of Australia’s most listened-to, attracting over 800,000 monthly listeners. The extension underscores SCA’s commitment to delivering premium audio content and strengthens its position as the country’s leading podcast network.