The merger between Australia's biggest TV network and its largest radio station chain has taken less than six months to run into trouble.
Southern Cross Media Group announced on Thursday the television market it entered when it merged with Seven West Media in January had "deteriorated materially more than anticipated" in the June quarter.
As a result, the corporate owner of the Seven Network, Triple M, the Hit Network and the West Australian newspaper is slashing hundreds of jobs, downgrading its guidance and writing off millions of dollars from a burdensome television content contract.
Southern Cross now expects to deliver earnings of $185 to $190 million in 2026/27, compared to its previous forecast of $200 million to $220 million.
"We must reset our cost base to meet current market conditions and capture the full benefits of scale across our trusted platforms for our audiences and advertisers, now and into the future," the company's new chief executive and managing director Rohan Lund said.
