- Southern Cross Media Group (SCA) has announced it is eligible for the JobKeeper extension
- The company will keep the government handout until January 3, 2021, and expects to receive approximately $12 million in payments
- Southern Cross says advertising bookings for the December quarter remain strong and the gradual easing of COVID-19 restrictions in Victoria will help the company recover revenues
- Due to this, Southern Cross believes it will not be eligible for JobKeeper past January
- On the market this afternoon, Southern Cross is up 4.84 per cent, trading at 16.3 cents per share
Southern Cross Media Group (SCA) has announced it is eligible for the JobKeeper extension.
The company will keep the government handout until January 2021 and expects to receive approximately $12 million in JobKeeper payments.
The payments will be used to offset employee costs from September 28 to January 3.
Southern Cross says advertising bookings over the December quarter remain strong and the gradual easing of COVID-19 restrictions in Victoria will further aid recovery of revenues. Due to this, Southern Cross believes it will not be eligible for JobKeeper past January 3.
Meanwhile, the company has been focussed on strengthening its balance sheet. At the end of September, net debt was $93 million, which is a $39 million reduction since June 2020.
A further trading update will be provided at the company’s annual general meeting on October 30, 2020.
In August, the media company saw a decrease in earnings, revenue and profit as the radio and TV sector was heavily impacted by COVID-19.
Southern Cross Media’s revenue dropped 18.2 per cent from the 2019 financial year to a total $540.8 million. Meanwhile, underlying net profit after tax (NPAT) dropped a massive 51.6 per cent to $35.8 million.
On the market this afternoon, Southern Cross is up 4.84 per cent, trading at 16.3 cents per share at 1:22 pm AEDT.