Broadcaster SCA has received unsolicited approaches from several parties interested in the company’s regional television assets.
SCA: “The approaches, which are non-binding and incomplete, do not include details of timing, price or terms. There is no guarantee that any of these approaches will result in a transaction.”
The company hired financial adviser Grant Samuel to assess strategic options for its television business, including engaging with interested parties regarding a potential sale.
In the six months ended December, television revenue was $65.8 million, down 22%.
SCA also announced a market buyback of up to $40 million. However, EBITDA* (earnings before interest, taxes, depreciation and amortization) increased by 27.3% to $17.5 million. The change in affiliation from Nine to Ten in July 2021 resulted in lower revenues, but EBITDA increased due to market firming (+9%)1 and a significant reduction in programming costs.
The Company: “With modest leverage and steady free cash flow generation expected to continue, the Board has
approved the buyout to improve shareholder returns. SCA will fund the buyout from cash reserves and existing credit facilities, while continuing to invest in SCA’s digital audio strategy to grow audiences and revenue opportunities. »
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