SCA deny media reports on CFO Lewis’ resignation

Earlier this month, Southern Cross Austereo’s Chief Financial Officer Peter Lewis resigned just one month after taking up the position.

The news sparked rumours that Lewis’ departure on July 17 was due to a disagreement about a proposed writedown on its TV and radio licences and sell some of its regional radio assets to raise capital. Last night the Australian Financial Review reported Southern Cross Media Group has denied the report published by The Australian.

TMN phoned SCA this morning for clarification, they had not provided an official statement in time for publication.

It is no secret SCA’s finances have taken a hit; the loss of Kyle and Jackie O to rival KIIS FM last year caused a consequential 10% ratings drop in June, and the company itself said its net profit was predicted at $80 million for 2014 rather than previous predictions of $89 million.

Reports have also surfaced detailing shares in SCA are down approximately 29% for the year. If those reports are true, the fall in shares erases $400 million from SCA’s market capitalisation.

The company’s largest shareholder is investment bank Macquarie Group, who has a 26.6% stake.

While The Australian’s report on why Lewis stepped down has been quashed by the media company themselves, the publication has said SCA Chairman Max Moore-Wilton commissioned a survey to fund managers and market analysts earlier this year to gain knowledge of their views on the company and its management.