Home > Latest News > Spotify Killing Radio: Top SCA Shareholder

Spotify Killing Radio: Top SCA Shareholder

Southern Cross Austereo’s largest shareholder has warned that Spotify may kill off the future earnings potential for the company, despite shares being “very cheaply priced.”

Allan Gray managing director Simon Mawhinney said SCA shares, which have dropped 32 per cent this year alone, are in for a bumpy ride.

“Southern Cross trades at a very low multiple of earnings,” Mawhinney said.

“We think, sustainably, the company should make around $95 million of pre-tax earnings. And relative to that, it’s very cheaply priced.

“But, of course, the elephant in Southern Cross’s room is, is Spotify going to kill it? And are people going to listen to the radio in five-10 years’ time?

“I guess if it’s 10 years’ time we’re fine and we’ll make our investment back, if it’s five years’ time it’s going to be touch and go.”

SCA shares have fallen 42 per cent since November 2020. They fell a further 2.6 per cent on Friday, closing at $1.32.



You may also like
Southern Cross Austereo CEO Steps Down
Google “Asleep At Wheel” During Week Long Aussie Radio Outage
Nine Radio Still The One, As ABC Ratings Slide
Seven Sells Pacific Mags To Bauer For $40m
COMMENT: Triple M Has Got To Be Praised For Sticking It To Triple J

Popular Posts

Worldwide Appliances Jack Up Prices Ahead Of New Outdoor Cooking Range Launch
Latest News
/
/
Seagate To Acquire Intevac In All-Cash Deal
Latest News
/
/
YouTube Shorts with Veo 2
Google Boosts Online AI Video With Veo 2
Latest News
/
/
Leaked Renders Of Samsung Budget Galaxy A36 Revealed
Latest News
/
/
French AV Brands Getting Traction In OZ Advance Paris The Latest
Latest News
/
/

Digital Magazines

Recent Post

Worldwide Appliances Jack Up Prices Ahead Of New Outdoor Cooking Range Launch
Latest News
/
//
Comments are Off
  Six months after Worldwide Appliances took on the Everdure Barbecue brand the business has announced price rises of between...
Read More