Key developments

Overall, the media sector in Australia and New Zealand have struggled to maintain their position over the last year well despite the deterioration of economic conditions. Economic growth is sluggish relative to previous years, and the impact on advertising continues to depress valuations for ad-dependent stocks.

Southern Cross Media

Southern Cross Media’s stock continued its decline in June, down around 14%. With the deal with ARN on life support, the company also announced it will not proceed with a proposed acquisition of select print and digital news assets from Australian Community Media. Southern Cross concluded that the assets ‘do not align with Southern Cross’ audio-focused strategy’.

ARN Media

ARN Media’s shares fell close to 22% in June, with investors punishing the stock since mid May when it was reported that Anchorage Capital Partners withdrew from the deal with ARN to acquire Southern Cross Media, and the subsequent revised proposal by ARN which was promptly rejected. These events cast doubt over any revival for the industry-shaping deal between the two companies.

NZME

NZME’s stock rose close to 8% over the past month, with investors seeming to react favourable to the company’s investor presentation released on June 6. The presentation highlighted outperformance relative to peers in a challenging market, and the company’s strategic direction to FY26 focusing on growth from OneRoof and digital publishing.

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