Southern Cross Media Group shares were boosted on Friday after it announced it has reached a new broadcasting agreement with Network 10 following negotiations between the two parties.
As a result of the agreement, SCA will broadcast channels 10, 10 Bold, 10 Peach and 10 Shake in the three aggregated markets of regional Queensland, Southern NSW and regional Victoria for two years commencing 1 July 2021. Respective sales, technical, and operations teams have worked closely to ensure there will be a seamless transition to Network 10 programming on 1 July 2021.
With Network 10’s suite of successful programs including MasterChef Australia, Australian Survivor, The Bachelor Australia, The Masked Singer, The Project and live A-League, Westfield WLeague, Socceroos, Matildas and FFA Cup matches, SCA anticipates continuing its solid sales performance to generate strong commercial returns for both SCA and Network 10.
Over the five year period of the previous affiliation with Nine, SCA’s sales power ratio (converting ratings to revenue) in the three aggregated markets improved by nine percentage points from FY17 to FY21.
Television revenue booked to date for the first quarter of FY22 is in line with SCA’s internal forecasts and is currently pacing ahead of the same time in the current financial year, which was affected by COVID-19. The national advertising market has led the recovery, and this is now being supported by improving local investment across all regions.
SCA’s television business continues to include program supply agreements with Seven West Media covering the Tasmania, Darwin, Central and Spencer Gulf markets until 30 June 2022.
SCA also broadcasts Nine and Network 10 programming in Spencer Gulf. From 1 August 2021, SCA will also broadcast Sky News Regional – featuring news, weather, national affairs and sport from Sky News Australia and FOX SPORTS – in regional markets across Victoria, Southern NSW, Queensland and Spencer Gulf.
The initial two-year affiliation with Network 10 will enable SCA to optimise the strategic and commercial position of its television business in the evolving free-to-air television market. Importantly, SCA expects its television earnings under the new affiliation agreement with Network 10 to be neutral compared to the current Nine affiliation (excluding JobKeeper and PING funding).