This was published 9 months ago
Craig Hutchison scores debt goal amid half-year loss
By Calum Jaspan
Craig Hutchison’s Sports Entertainment Group has two months to pay down $7 million to the Commonwealth Bank of Australia after agreeing to a new three-year extension of its debt facility.
As the company announced its half-year results, it said it had struck a new deal in February with CBA, replacing a previous deadline to repay the bank by August.
Craig Hutchison at Sports Entertainment’s annual general meeting in November.Credit: Joe Armao
Under its new deal, SEG will have a $20 million loan facility, with $2.4 million in working capital after paying down the $7 million by the end of April, bringing lingering concerns over the bank calling in its loan to an end for now.
The company’s half-year results, posted on Thursday morning, reported revenue rose 8 per cent to $63.3 million across the half. However, the company posted a loss of $20,000 after tax from continuing operations.
Its performance from discontinued operations – which takes account of assets that have been sold or are being held for sale – included a loss of $1.5 million while having $5 million in cash available. The company’s total current borrowings sit at $28 million.
Statutory earnings before interest, taxes, depreciation and amortisation (EBITDA) were $5.6 million, a rise of 11.9 per cent on the corresponding half.
Sports Entertainment also announced in its trading update that its chief financial officer Chris Tan will be departing, to be replaced by general manager for finance, Trent Bond.
Hutchison, a journalist and media executive, is the ASX-listed company’s second-largest shareholder, as well as its CEO, managing director and leading on-air talent.
Alongside the company’s sporting assets, it also owns digital and radio assets (Sports Entertainment Network) and a television production company. The company has been open about its ongoing talks to secure deals after its auditors issued a warning in late 2023 over its ability to survive should it not find cash to bring down its borrowings.
In November, the company said it had secured a deal to sell off its New Zealand business for $3.7 million, later selling shares in its SEN Teams business, which includes the Perth Wildcats, in exchange for $1.5 million. It later raised another $0.5 million. The deals valued the company’s sports business at $40 million.
In February, SEG issued almost 10 million new shares, finding around $2 million in the process.
The company has been approached for comment.
Nine Entertainment, the owner of this masthead, owns a 3 per cent stake in SEG via 3AW.
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