Southern Cross Media Group Limited (SXL)



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General Information
Company Name: Southern Cross Media Group Limited
Stock Code: SXL
Website: www.southerncrossaustereo.com.au
GICS Sub-Industry: Broadcasting
Market Cap ($M): 735
Equiv. Shares (M): 731

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 1.005 $ 1.045 $ 1.055 $ 0.990 $ 1.040 1,750,667 $ -0.035  -3.365 %

Current Broker Consensus Recommendation more
Recommendation: Sell (3.6667)
Recommendation Date: 18th Dec 2014
Brokers Surveyed: 3

Company Overview

Business Description:
Southern Cross Media Group Limited (SXL) is a media provider which owns and engages in the broadcasting of content on free to air commercial radio (FM and digital), TV and online media platforms across Australia.

Strategy Analysis:
SXL is focused on its core Australian television and radio broadcasting assets. Its key short-term objectives will be to ensure a smooth integration of the Austereo acquisition and the realisation of full synergy benefits. Longer term, SXL want to harness cross selling between advertising mediums and profit from a national presence. Southern Cross Media Group reported NPAT down 52% to $45.13m for the half-year ended 31 December 2012. The decrease in NPAT has been impacted by the one-off $39.5m income tax benefit recognised in the prior half year as a result of the companies acquired in the Austereo business combination entering into the tax consolidated group of Southern Cross Media Group. Revenues from ordinary activities were $327.68m, down 10% from the same period last year. Basic and Diluted EPS was 6.4 cents compared to 13.3 cents last year. Net operating cash flow was $66.67m compared to $109.74m last year. The interim dividend declared was 4.5 cents compared with 5.0 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 79.4 11.3 17.3 9.2 8.0 7.7 100.0
2015  F 67.7 9.6 -15.0 10.8 7.0 6.7 100.0
2014  A 79.7 11.3 -12.0 13.3 7.5 5.0 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Prime Media Group (PRT) $328 M -0.3705 0.1192 0.0298 10.6675 9.5314 9.2554 7.60 8.26 8.42
Sky Network TV (SKT) $2,156 M 0.3333 0.1374 0.0413 13.9899 12.3002 11.8124 4.86 6.12 6.37
Southern Cross Media (SXL) $761 M -0.2121 -0.1497 -0.0250 9.2117 10.8333 11.1111 7.21 6.01 5.93
Ten Network (TEN) $566 M -- -- -- -- -- -- 0.00 0.00 0.00

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
SXL 0.94 9.58 0.58 10.00 1.11
Market 0.90 15.0 1.19 1.94 1.48
Sector 1.00 13.1 1.44 1.86 1.13

Directors
Name Position Start Date
Mr Max Moore-Wilton Non-Executive Chairman 27 February 2007
Mr Leon Pasternak Non-Executive Deputy Chairman 26 September 2005
Mr Peter Mervyn Harvie Non-Executive Director 01 August 2011
Ms Kathryn(Kathy) J Gramp Non-Executive Director 01 September 2014
Mr Robert (Rob) Andrew Murray Non-Executive Director 01 September 2014
Mr Christopher (Chris) de Boer Non-Executive Director 20 September 2005
Mr Glen Francis Boreham Non-Executive Director 01 September 2014

Management
Name Position
Guy Dobson Chief Content Officer
Rhys Holleran Chief Executive Officer
Jane Summerhayes Company Secretary,General Counsel
Craig Bruce Head of Content
Andrea Ingham National Sales Director

Substantial Shareholders
Holding Name
73,137,393 (10.37%) Citicorp Nominees Pty Limited
173,719,253 (24.64%) Macquarie Diversified Asset Advisory Pty Ltd
97,602,436 (13.84%) J P Morgan Nominees Australia Limited
88,142,725 (12.50%) National Nominees Limited
103,576,223 (14.69%) HSBC Custody Nominees (Australia) Limited

Calendar of Events
Date Event
18 September 2015 Report (Annual)
08 September 2015 Report (Prelim)
19 August 2015 Report (Prelim)
18 February 2015 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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