Southern Cross Media Group Limited (SXL)



Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today Ľ it's FREE! Already a member? Login now!


General Information
Company Name: Southern Cross Media Group Limited
Stock Code: SXL
Website: www.southerncrossaustereo.com.au
GICS Sub-Industry: Broadcasting
Market Cap ($M): 836
Equiv. Shares (M): 705

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 1.185 $ 1.165 $ 1.200 $ 1.150 $ 1.140 4,216,416 $ 0.045  3.947 %

Current Broker Consensus Recommendation more
Recommendation: Hold (3.3333)
Recommendation Date: 19th Aug 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 91.2 12.9 15.6 9.2 9.0 7.6 100.0
2015  F 78.9 11.2 -1.0 10.6 8.0 6.8 100.0
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
Sky Network TV (SKT) $2,308 M 0.1937 0.3700 0.0796 19.9663 14.5736 13.4987 3.41 4.80 5.19
Southern Cross Media (SXL) $804 M 0.0112 -0.2094 -0.0362 7.9553 10.0618 10.4396 7.89 6.98 6.23
Ten Network (TEN) $697 M -- -- -- -- -- -- 0.00 0.00 0.00

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
SXL 1.12 10.54 0.69 10.00 1.30
Market 0.99 16.4 1.31 2.17 1.69
Sector 1.14 14.2 1.56 10.00 1.29

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
Mr Michael Carapiet Non-Executive Director 10 March 2010
Mr Christopher (Chris) De Boer Non-Executive Director 20 September 2005

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
173,719,253 (24.64%) Macquarie Diversified Asset Advisory Pty Ltd
73,137,393 (10.37%) Citicorp Nominees Pty Limited
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
19 August 2015 Report (Prelim)
18 February 2015 Report (Interim)
19 September 2014 Report (Annual)
© 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.

Advertisement

Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Investing in Shares via SMSFs

An educational booklet that outlines how to get the most from your share investments for retirement thorugh your self managed super fund.

More details...

News

Billionaires bankroll Ten's new direction Media Network sees digital future

The Age 19/12/2013 | Ten Network's programming ambitions will be funded by a $200 million loan guaranteed by three of its billionaire owners, as the free-to-air broadcaster declared digital was the future and pointed to early signs that its switch to an older market demographic was working.

Elders alleges $24m fraud in live cattle division

The Age 19/12/2013 | Troubled rural services group Elders is threatening to call in the police over an alleged $24 million fraud by a "handful of individuals" in its live cattle exports division.

Bega Cheese holds back in three-way bidding war for WCB

The Age 19/12/2013 | Bega Cheese began the battle for Warrnambool Cheese & Butter but three months on it appears to be the first casualty of the bidding war.

Aussie hampers transition

The Age 19/12/2013 | A persistently high Australian dollar is thwarting the Reserve Bank's efforts to ease the transition of the economy away from mining.

RBA keeps its focus on lower dollar

The Age 19/12/2013 | The Reserve Bank is keeping the door open to further interest rate cuts, but believes the "significant amount" of monetary policy easing over the past two years is already stimulating growth.

Pact's struggles weigh down Orora

The Age 19/12/2013 | The underwhelming sharemarket debut of packaging company Pact Group Holdings has weighed on the demerger of Amcor and its $2 billion Australasian packaging and distribution business Orora.

More...


Sponsored Links