Southern Cross Austereo wants to put a dismal 2014 behind it as it pins its hopes on a new breakfast radio team in Sydney and improved ratings from its TV affiliate, Ten.
The broadcaster on Wednesday unveiled a 25 per cent slide in its first half profit to $34.7 million, which follows a $296 million loss for the 2013/14 financial year.
Pre-tax earnings slid 18.3 per cent during the half, at the lower end of the 18 to 20 per cent slide it had forecast.
Southern Cross, which owns a string of regional TV stations and radio networks including 2DayFm and Triple M, attributed the result to a weak TV advertising market and falling ratings for its metro radio stations.
The broadcaster was left reeling last year in Sydney after the departure of the hugely successful Kyle and Jackie O from 2DayFm's breakfast slot and the disappointing performance of their replacements Mel B, Sophie Monk, Jules Lund and Merrick Watts.
It remains cautious in its financial outlook for the rest of the financial year but says things have picked up early in the second half thanks to the success of affiliate Ten's T20 Big Bash League and increased advertising linked to Queensland's state election campaign.
"You can call that cricket and Campbell," Chief executive Rhys Holleran says, referring to the ousted Queensland Premier Campbell Newman.
Mr Holleran is confident 2DayFm will be able to regain lost ground in 2015 with its new breakfast team of Dan Debuf and Maz Compton.
"We think that we've got the freshest young talent we've seen in a decade in regards to metro radio," he said.
"We're not making great predications that we are going to be first or second but we are looking for them to build and I am certain they will."
Southern Cross also expects to receive a boost from the return of the popular Hamish and Andy to 2dayFm's drive slot in July.
"We're very mindful that this will take a bit of time for us to achieve but this is the best this building has felt in Sydney for a long long time," Mr Holleran said.
"We've had the year we've had to have and away we go."
Southern Cross shares gained 17 cents, or 18.2 per cent, to $1.105.
The company also announced the appointment of Peter Bush as chairman, replacing the outgoing Max Moore-Wilton.
SOUTHERN CROSS PROFIT SLIDES
* Net profit of $34.7m, down 25pct from $45.9m in 2013/14
* Revenue of $307.6m, down 7pct from $331.9m
* Interim dividend of three cents per share, down from 4.5 cents
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