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Triple M and 7NEWS owner Southern Cross Media Group (ASX: SXL) has downgraded its full-year earnings guidance and announced a sweeping cost-reduction program that will see between 250 and 300 full-time roles cut before the end of June, as advertising market conditions deteriorate faster than the company anticipated.
The Melbourne-headquartered media group now expects FY26 group revenue of $1.86 billion to $1.87 billion, down from previous guidance of $1.91 billion to $1.92 billion.
Underlying EBITDA has been cut to a range of $185 million to $190 million, well below the $200 million to $220 million the company had previously forecast.
Southern Cross Media says advertising market conditions "deteriorated materially more than anticipated" during the fourth quarter of FY26, with television hit hardest.
The downgrade comes less than six months after the group completed its merger with Seven West Media in January, a deal that brought the Seven television network, 7NEWS.com.au and The West Australian newspaper under the same roof as the Triple M and Hit radio networks.
The cost-reduction program targets annual run-rate savings of $145 million to $150 million, a figure that is inclusive of $30 million in merger synergies already delivered since the Seven West integration.
The company expects to book a restructuring charge of about $20 million in connection with the job losses.
Southern Cross Media has also flagged a non-cash onerous contract provision of $65 million to $70 million against legacy television content deals inherited from Seven West Media.
The provision will be recognised through purchase price accounting from the merger.
“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," says Southern Cross Media CEO Rohan Lund.
"Unfortunately, this means saying goodbye to some talented colleagues who have helped build our business.
"We are deeply grateful for their contributions, and we are committed to supporting them through this transition.”
The scale of the cuts reflects the depth of the advertising downturn gripping Australia's traditional media sector.
Data from Mi3 shows the national agency advertising market declined 5.2 per cent in March 2026 compared to the prior corresponding period, with linear television ad spend falling 10.1 per cent and radio bookings dropping 6.4 per cent year-on-year.
The broader market weakness has compounded the integration challenge facing Southern Cross Media as it absorbs Seven West's television, digital and publishing operations.
The merger, first announced in late 2024, was pitched as a way to build a diversified national media company with scale advantages across audio, television and digital platforms.
Industry sources say that up to 200 of the planned redundancies are expected to fall across Seven's broadcast and print operations.
The revised EBITDA guidance of $185 million to $190 million represents a reduction of between $10 million and $35 million from the midpoint of the company's prior range.
Despite the slump in advertising revenue, Southern Cross Media says it continues to deliver "strong audience outcomes" as well as positive momentum arising from combining content, sales and operations activities across the group.
The group's total TV audience share is up by 1.1 per centage points in the current financial year to the end of May.
The HIT radio business is the number one network for people aged 25-54 with 19 per cent share and women aged 25-54 with 21 per cent share, while Triple M is the leading network for men aged 25-54 with a 22 per cent share.
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