• FY26 revenue expected at $1,860-$1,870 million, down from $1,910-$1,920 million
• FY26 underlying EBITDA projected at $185-$190 million
• Cost reduction program expected to deliver $145-$150 million annual benefits

Southern Cross Media Group Limited (ASX: SXL) reported a challenging trading environment for FY26, with market conditions deteriorating more than anticipated. The company expects revenue to be between $1,860 to $1,870 million, down from the previous guidance of $1,910 to $1,920 million. Underlying EBITDA is now expected to be between $185 to $190 million, down from the previous guidance of $200 to $220 million. The company has initiated a significant cost reduction program, aiming to achieve annual run-rate benefits of $145 to $150 million by the end of FY26. This program will result in 250 to 300 full-time equivalent (FTE) positions leaving the company before June 30, 2026, with a restructuring charge of around $20 million. The company also announced a proposed non-cash onerous contract provision of $65 to $70 million, reflecting subdued economic conditions and structural changes in the TV advertising market.

FY26 revenue: $1,860M - $1,870M, EBITDA: $185M - $190M, restructuring charge: $20M

Southern Cross Media Group expects to achieve annual run-rate benefits of $145 to $150 million from the cost reduction program, offsetting ongoing cost inflation and funding targeted investments.