SCOOP: Multiple redundancies underway at SCA after internal ‘review’
The impact of declining radio revenue is beginning to count casualties.
Radio Today can reveal that Southern Cross Austereo will make up to 90 roles redundant this week, with a number of employees notified today (December 3), according to sources.
SCA was unable to comment on, nor confirm, the number of people affected as negotiations are continuing. But SCA did, however, provide a statement to Radio Today.
“The entire advertising and media sector is operating in a challenging and difficult market and Southern Cross Austereo has and is being equally affected.
“Management, with the support of the Board, have conducted a comprehensive review of our workforce structure to provide an effective and efficient organisation for now and into the future. These proposed changes will impact some of our people.
“These decisions have not been taken lightly and we are committed to supporting our people as we work through this process.”
SCA chief Grant Blackley at the 2019 Radio Alive conference.
Advertising revenue for metro commercial radio stations declined by 10.2% in the 2019 September quarter.
In the same period last year, the radio network’s generated $202.109 million, compared to just $181.432 million this year.
SCA released its financial year results for 2018/19 in October, and despite an increase of 0.5% in overall group revenue, the company reported a net annual loss of $91.3 million. Underlying EBITDA grew marginally by 0.9%
Although the overall result was disappointing, SCA’s audio segment delivered promising results, with a 2.4% increase $453.4 million (that figure combines metro, regional and podcasting).
But the growth in podcasting and on-demand audio hasn’t happened quick enough to save the day.
When it came to metro performance in particular, SCA chief executive Grant Blackley told Radio Today there are three key factors underpinning this year’s performance.
“The first thing is a very consistent and solid performance across all of our FM brands,” he says.
“The second thing would be the continued maturity of our DAB brands, which are now interwoven across our entire radio platform.
“And the third thing is that we’ve had a very strong sales effort that actually has delivered four consecutive improvements in share of our metro market.”
In the latest Standard Media Index, ad spend data showed an 8.5% drop for October.
More to come…