Wire
Update: Southern Cross Media Group to Cut Up to 300 Jobs; Downgrades Fiscal 2026 Guidance; Shares Down 4%
(Updates to add stock movement in the headline and last paragraph)Southern Cross Media Group (ASX:SXL) said it will cut between 250 and 300 full-time roles before June 30 as part of cost reduction program, resulting in fiscal 2026 restructuring charges of around AU$20 million, according to a Thursday filing with the Australian bourse.The program seeks to eliminate duplication, streamline and automate processes, and place a greater focus on content acquisition, per the filing. It is expected to yield annual run rate benefits of AU$145 million to AU$150 million at its conclusion.Additionally, Southern Cross Media now expects fiscal 2026 revenue of AU$1.86 billion to AU$1.87 billion, down from a previous guidance range of AU$1.91 billion to AU$1.92 billion. The company also lowered its outlook for underlying earnings before interest, taxes, depreciation, and amortization for the fiscal year to between AU$185 million and AU$190 million from AU$200 million to AU$220 million previously.The new guidance comes as market conditions have worsened significantly more than expected through the fiscal fourth quarter, especially within the TV segment, the company said.Meanwhile, Southern Cross Media has revised downwards the expected direct and indirect benefits from a range of its legacy TV content contracts. The move will result in a fiscal 2026 onerous contract provision of AU$65 million to AU$70 million, with effect from the date of the company's merger with Seven West Media.Southern Cross Media Group is scheduled to report fiscal-year results on Aug. 11.The company's shares fell past 4% in recent Thursday trade.
ASX:SXL