Southern Cross boss to step down amid advertising challenge

Grant Blackley, who has been at the helm of Southern Cross Media Group (SCA) for eight years, will step down in June and be replaced by chief operating officer John Kelly as the company faces a challenging advertising media outlook.

In an announcement to the ASX on Monday, the company announced Blackley would step down as managing director and chief executive on June 30, and that Kelly would be appointed to the role from July 1.

Grant Blackley has run Southern Cross since 2015.Credit: Louise Kennerley

The move comes after the radio and television company enlisted a recruitment firm to explore the industry for its next chief executive in April last year.

SCA chair Rob Murray said the board appreciated Blackley’s leadership, “particularly through the challenges presented by the lockdowns and uneven recovery from the COVID-19 pandemic”.

Under Blackley, SCA rolled out radio brands Triple M and Hit around the country, acquired the Redwave stations in Western Australia and launched streaming service LiSTNR as the company shifted towards digitisation.

In February, SCA announced revenue from its radio network grew 6.8 per cent, outperforming the market by 2.2 percentage points and that revenue from LiSTNR grew 37.5 per cent in the first half. However, Blackley noted the company’s television segment continued to face structural challenges.

Blackley and Kelly have worked together for more than 20 years, both at the Ten Network and at Southern Cross, and the outgoing boss expressed confidence in his successor.

“I know he is the right person to lead the next growth phase at SCA,” Blackley said.

Kelly spent 16 years in executive roles at Ten, including eight years as group chief financial officer, and three years as chief operating officer at Football Federation Australia before joining SCA as chief operating officer in 2016.

Murray said Kelly was “universally respected around the business for his balanced and engaging leadership style, his ability to build effective and accountable teams and for his strong networks in the wider media industry”.

Despite ongoing challenges in advertising media markets, Kelly said SCA could take advantage of emerging and accelerating digital trends.

From June 2019 to June 2022, the company’s revenue fell from $660.1 million to $519.7 million, and in June 2022, SCA reported a negative net profit of $153.7 million.

SCA said it did not intend to appoint a new chief operating officer for now, but Kelly and the board would review the structure of the group’s executive team and reporting lines during the transitional period.

Blackley also agreed to extend his contractual post-employment restraint period from six months to nine months, and will spend the next two months providing a transition to the incoming chief executive.

Blackley is one of the longest serving leaders in Australian media, and in February said he had no immediate plan to leave the firm. However, he noted that “ultimately, it’s up to the shareholders and board to make that decision”.

SCA’s share price dropped 2.2 per cent on Monday to 82¢, and has dropped 51 per cent over the past year.

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