“The market perceives radio to be in decline, but it’s a bit unfair. We’ve been knocked around by COVID. It’s not high growth, but there’s still growth in the medium, it generates good audiences, and it’s cost-effective for an advertiser,” he said.
“Southern Cross has lagged because of investment in podcasting, and they had to raise money. It had to reinvent itself and that’s where the apps are relevant. Southern Cross has more digital channels than any other station. It is strategically well positioned. ”
Southern Cross is in the process of selling off its regional television assets. It is unclear whether any private equity firms or media companies – such as affiliate partner Paramount – have lodged a bid, but sources familiar with the deal say a transaction, if it happens, will occur before the next financial year. There is still a chance real-estate entrepreneur Antony Catalano may make a late bid for the asset, dependent on price, according to people close to the discussions who spoke anonymously.
Conn says this could also increase its value. “If they can monetise their TV business and return capital to shareholders, you are left with a pure audio business which could appeal to another corporation,” he said.
Shares in Southern Cross Media Group closed at $1.32 on Friday, down 2.6 per cent.
