Seven Acquires Southern Cross Television Assets

Key points

• Seven West Media acquires television licences and assets from Southern Cross Media Group
• Acquisition completes Seven's national broadcast network and opens new markets
• Transaction expected to be immediately earnings accretive in FY26

Full summary

Seven West Media Limited (ASX: SWM) has announced that it has entered into a binding agreement with Southern Cross Media Group Limited (ASX: SXL) to acquire the television licences and associated assets operating in Tasmania, Darwin, Spencer Gulf, Broken Hill, Mt Isa and Remote, Central and Eastern Australia. These licences currently broadcast the Seven Network television signal in each market under the existing Affiliation Agreement with SXL. The acquisition will largely complete SWM's national broadcast network and open new markets to Seven, where the powerful offering of digital television - both live and VOD - on 7plus will complement the Seven broadcast signal. A consideration of $3.75 million cash will be paid on completion, and the transaction is expected to be immediately earnings accretive in FY26. Completion of the transaction is anticipated by 30 June 2025. SWM Managing Director and Chief Executive Officer, Jeff Howard, stated that the acquisition is another positive step in SWM's strategic transformation program, allowing the company to further leverage its leading news, sport and entertainment content in these new markets, across both Seven and 7plus, to drive incremental revenue, earnings and cash flow. Following this acquisition, Seven will reach almost 100% of Australia's population (excluding the Riverland region).

Guidance

The transaction is expected to be immediately earnings accretive in FY26.