“SCA strategically is committed thematically to being ‘all about Audio’ and accordingly will continue to look to reduce its exposure to the TV ad market through the sale of its licences,” the company said in its annual results, noting that revenues from the declining regional TV market were falling faster than forecast.
Sources said SCA was negotiating with Seven and Ten around the $15 million to $20 million mark. Earnings for the unit, which consists of 96 regional television licences, declined from $38 million to $19 million after Nine switched its affiliate arrangements back to Win in 2021.
SCA last reported a 29 per cent decline to 13.3 million. This column understands further declines in the market and Ten ratings have pushed forecasts to around $5 million. As such, this would imply three-times earnings for the unit if the sale goes ahead at the expected price.
Ten, Southern Cross and Seven declined to comment.
Sources told Street Talk last month that the Stokes family-controlled network had offered Southern Cross $40 million for two of its affiliates three years ago, representing three-times earnings. That offer had been reduced to $20 million, they added. Others disputed these figures, saying no offer was formally put on the table.
The Australian Financial Reviewreportedon Monday that billionaire and Nine Entertainment kingmaker Bruce Gordon had quietly retired from the boards of his regional broadcaster WIN and private investment firm Birketu.
The sale of SCA’s TV units would be closely watched by WIN, which isclose to offloading its northern NSW TV station. Gordon bought the asset for $55 million in 2017 from SCA. If a possible Ten-Seven deal is anything to go by, it will go for less than that.
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