Southern Cross Media has warned its full-year earnings will be at least $9 million below previous guidance and below last year's $168 million, while also announcing the sale of some of its NSW TV assets to rival WIN.
WIN will buy Southern Cross's northern NSW TV operations in a deal worth $55 million.
Southern Cross also warned pre-tax earnings for 2016/17 would fall short of the $177 million to $183 million forecast in December, saying "challenging and short" TV and radio advertising markets would push earnings slightly below the 2015/16 level.
Southern Cross announced the TV assets sale to WIN in March, with the deal structured for WIN to pay $45 million on completion and $10 million one year later.
The sale simplifies a complex regional affiliation situation whereby Southern Cross has broadcast Ten Network content in northern NSW, while WIN is Ten's partner elsewhere on the eastern seaboard.
Friday's earnings downgrade took a toll on Southern Cross shares, which closed down 5.4 per cent at $1.22.
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