Financial Report 2017
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S OUTHERN CROSS AUSTEREO OUTHERN CROSS ANNUAL REPORT | ANNUAL REPORT 2017 | ANNUAL REPORT For personal use only For personal use only For personal use only Southern Cross Austereo . Annual Report ED SHEERAN – HANGING ROCK 08.02.2017 For personal use only 6 Southern Cross Austereo . Annual Report AM, FM & Digital Radio Stations 84 7.3 Million National Reach 4.6 Million listeners 3.5 Million listeners 1 Podcast nationally each week nationally each week Network 43 FM Stations 35 AM & FM Stations 17 #1 Online #1 Radio Group 17 Local TV Radio Group on Social News Services For personal use only 4.8 Million weekly $1 Billion 2,500+ TV viewers Capitalisation Staff Southern Cross Austereo . Annual Report 7 Statistics Snapshot 4-5 SCA’s Winning Ambition 8-9 Metro Audiences Engage with SCA 10-11 Winning The Hearts of Locals in Regional Australia 12-13 Australia’s Largest Audio Network 14-15 The Commercial Power of SCA 16-17 Our People, Values & Partners 18-19 Board of Directors 20-21 Chairman’s Statement 22-23 CEO’s Report 24-25 Financial Report 26 For personal use only 8 Southern Cross Austereo . Annual Report For personal use only 9 LEADING BRANDS Delivering unrivalled scale & simplicity For personal use only 10 Southern Cross Austereo . Annual Report SOUTHERN CROSS AUSTEREO’S WINNING AMBITION CA is Australia’s pre-eminent local content ensures communities want to and most diverse entertainment watch, listen to and engage with SCA in a company, with audio and visual meaningful way every day. Sbrands and content reaching 95% of Australians. Its strength as an entertainment company comes from its people; high profile national SCA aspires to be the preferred and local celebrities, and talented and For personal use only entertainment company across its metro and dedicated employees located in more than regional markets. 60 offices. Superior metrics and insights into audiences and their behaviour, together Dominant brands supported by leading with the ability to attract revenue by social media, live events, video, online and connecting clients to engaged audiences, mobile assets, delivering truly national and sets SCA apart. Southern Cross Austereo . Annual Report 11 MCG – AFL Grand Final 01.10.2016 METRO AUDIENCES ENGAGE WITH CA engages with 4.7 million consumers in metro Australia understanding how to reach SAustralians through its radio stations, at a live event, running a social media campaign or using its SCA multi-platform mediums. Creating and developing existing and new talent, SCA hosts the largest and most diverse national and local talent line-up. For personal use only 12 Southern Cross Austereo . Annual Report The Hit Network Triple M Focusing on hit music, old-school favourites After nearly 40 years, Triple M continues and RNB Fridays with hit shows at Breakfast to be an iconic radio entertainment brand and Drive, Hit entertains 3 million radio bringing the best music, sport, comedy listeners every week, 8.6 million Facebook and entertainment to predominantly male fans, 1.98 million Twitter followers and 1.26 audiences around Australia. million Instagram followers. With 2.3 million radio listeners each week, Leading with audiences under 40 years 2.89 million Facebook fans and 425,000 of age, Hit supports popular personalities Twitter followers, the Network continues including Fifi Box, Em Rusciano, Osher to grow audiences with its depth of talent Gunsberg, Abby Coleman, Harley Breen, centred around sporting heroes, comedians ENGAGE Brendan Fevola, Dave Thornton, Hamish and music gurus including Matty Johns, Blake, Andy Lee, Carrie Bickmore, Tommy Mark Geyer, Gus Worland, Ryan Girdler, Little, Constance Hall, Heidi Anderson, Peter Sterling, The Chaser, Roy & HG, Eddie Angus O’Loughlin and Ash London. McGuire, Luke Darcy, Mick Molloy, James Brayshaw, Billy Brownless, Chris Judd, Hit Network’s collaboration with Frontier Gorden Tallis, Greg Martin, Robin Bailey, Touring in 2016 saw sell-out RNB Fridays Ed Kavalee, Libby Trickett, Dennis Cometti, Live events in Sydney, Brisbane, Perth, Mark Ricciuto, Chris Dittmar, Andrew Jarman Adelaide and Melbourne, with over 50,000 and Dale Lewis. attendees and over 6 million participants across social media. And the World Famous Offering live experiences for lucky listeners, Rooftop continues to host globally renowned together with creating great original artists such as Katy Perry, Robbie Williams, online content, Triple M’s Garage Sessions Keith Urban, Macklemore and Ed Sheeran. showcase performances have included Sting Fans attend the spectacular shows that and Bernard Fanning. also create world-class content across all the Hit stations and its online and social media platforms. For personal use only Southern Cross Austereo . Annual Report 13 WINNING THE HEARTS OF LOCALS IN REGIONAL AUSTRALIA roadcasting 68 radio stations and Australia’s biggest radio networks 89 free-to-air TV signals, SCA’s radio and TV assets reach all corners In late 2016, the Hit and Triple M Networks Bof regional Australia. were expanded to include most SCA regional radio stations. The Hit Network now Millions watch SCA’s free-to-air boasts 43 stations nationally and Triple M has TV in regional Australia 35 stations. Under the Nine Network brand, SCA Listeners outside of the capital cities now broadcasts TV in the regional Queensland, have exposure to exciting Hit and Triple M regional Victoria and regional Southern New competitions and experiences and events such South Wales licence areas. as The Hit Network’s World Famous Rooftop and the Triple M Garage Sessions. SCA’s local And SCA also broadcasts the Seven Network stations continue to offer a wide range of channels in Tasmania, Darwin and the music and great shows with firmly established Remote Central and Eastern Australia; Nine, and adored home-grown talent, local news Seven and Ten channels in Broken Hill and and community information, meaning they Spencer Gulf and the Nine channels in remain firmly focused on “everything local”. Tasmania and Ten channels in Darwin and Remote Central and Eastern Australia (in Measurement of local radio audiences For personal use only joint ventures). continues to improve with SCA participating in 19 regional market surveys in 2017. It also In partnership with the Federal Government, shows audience shares have increased and SCA offers the Viewer Access Satellite the overall number has risen to as many as Television (VAST) services, giving TV to 2.4 million people. Australians living and travelling in remote Australia and in black-spot areas. 14 Southern Cross Austereo . Annual Report Regional radio and TV delivers to local communities Local TV news, sport and weather ensures Local SCA teams produce a Tasmanian news viewers know what is going on in their bulletin and a local bulletin is produced for local communities. Broken Hill and Spencer Gulf. For personal use only SCA is now broadcasting 15 local news TV Focused on content relevant to their services across regional Victoria, Southern communities, SCA’s local radio breakfast New South Wales and regional Queensland. teams bring their listeners the latest from News journalists and production staff their regions including more than 21,500 employed by Nine are located in each hours/year of local news, sport and weather local market. via 72 separate local news services. Southern Cross Austereo . Annual Report 15 For personal use only 16 Southern Cross Austereo . Annual Report KATY PERRY – WORLD FAMOUS ROOFTOP 30.06.2017 AUSTRALIA’S LARGEST AUDIO NETWORK CA offers listeners more music and and Triple M Modern Rock, all extending content than ever and makes it the listening options under each of the available when and how they want primary brands. Sit, via their devices of choice. The future of Audio – Audio on Radio stations are streamed from their demand; There’s One for Everyone websites, from the industry mobile app ‘RadioApp’ and from many SCA stations Consumers are keen to listen to some of streamed from their own branded their audio content on-demand as a mobile apps. personalised experience. Stations are available live and via catch- With its audio expertise, SCA has developed up podcasts. Many SCA show podcasts a new podcasting network offering listeners are regularly in the top ten entertainment original audio content on-demand, available and comedy catch-up podcasts, with Em via the PodcastOne website and mobile app. Rusciano and Harley Breen consistently achieving success in both rankings. SCA is pioneering a new type of commercial entertainment in Australia, reinvigorating All metropolitan stations are broadcast in the art of compelling storytelling by creating digital together with a further six stand-alone and commissioning original long-form digital stations. The Hit Network broadcasts content across multiple genres including Buddha Hits, Easy Hits and Oldskool lifestyle, sport, business, true crime, science Hits and the Triple M Network broadcasts and health. Triple M Classic Rock, Triple M Greatest Hits For personal use only Southern Cross Austereo . Annual Report 17 For personal use only 18 Southern Cross Austereo . Annual Report STING – Triple M Garage Session 03.10.2016 THE COMMERCIAL POWER OF SCA CA delivers to its clients large-scale specifically chosen the content and are often engaged radio and TV audiences, difficult to reach with other forms of media. combined with consumers who are Sinteracting with complementary SCA’s exclusivity to sell Vevo digital inventory social media, online and streaming content. and music video content in Australia expands SCA’s credentials as the place for advertisers And SCA is adapting to the changing media to go to for entertainment content. landscape, offering more opportunities to deliver audiences and an understanding of With a strong research and analytics team, those audiences. By integrating new digital SCA deeply understands its audiences. radio stations into the Hit and Triple M Insight combined with reach and depth of Networks, clients can reach their desired brands and assets means clients are better consumers across a family of “like-minded” able to build and amplify their campaigns.