Southern Cross Austereo's investment in big name radio talent is paying off, with the broadcaster lifting first half profit 25.1 per cent.
The return of Hamish and Andy to the national drive slot boosted revenue at the metropolitan radio business covering the Triple M and 2DayFM networks, which were laid low when presenters Kyle and Jackie O defected to KIIS in 2013.
Southern Cross, which lost money in each of the past two full financial years, increased market share in both metro radio and regional television revenues.
"We have been heavily investing in our strong radio business, particularly on talent and marketing," said chief executive Grant Blackley, the former Network Ten boss who took charge in May.
"We expect to derive increasing benefit from those investments in future periods."
Mr Blackley said the recent launch of the Rove and Sam breakfast show would be a contributor over the next reporting period.
"We've sunk considerable cost to re-establish our Sydney breakfast: we've brought on Hamish and Andy, which was a full six months of costs that weren't there the prior year," Mr Blackley.
"And furthermore, we've increased marketing. We think that is about the right level of investment for those particular assets."
Net profit for the six months to December 31 was $43.4 million, compared to $34.7 million a year ago.
That was on the back of a 4.7 per cent increase in overall revenue to $322 million, slightly above guidance given at the company's annual general meeting in October.
Southern Cross forecast full year profit of $75 million to $78 million, 16-20 per cent higher than FY15's figures excluding a $361 million writedown.
Regional TV performance for Ten affiliated licences rose 3.8 per cent, against a backdrop of a market-wide 6.4 per cent decline.
Southern Cross cut net debt by $200 million to $372.6 million over the 2015 calendar year, putting it in a position where it could consider acquisitions.
"Up until this point, we really didn't have a balance sheet that supported a range of initiatives," Mr Blackley said.
"That balance sheet repair is now complete and we can turn our attention to that."
Southern Cross shares rose one cent to $1.095.
INVESTMENT PAYS OFF FOR SOUTHERN CROSS
* Net profit up 25.1 pct to $43.4mn
* Revenue up 4.7pct to $322mn
* Interim dividend up a quarter cent to 3.25 cents, fully franked
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