Southern Cross Media Group has lost money following the first year of the business created by the merger of two media giants. The group, which combines Kerry Stokes’ Seven West Media and radio group Southern Cross Media and includes the West Australian newspaper and the Triple M network, reported net profits after tax at negative $3.8m.Its pro-forma results showed a net profit after tax of positive $9.9m, which was 57.6 per cent worse off than this time last year. It was a tale of two divisions, with falls in television offset by gains in radio. On the market open, shares dropped 1.83 per cent to $0.54 following the company announcement.Most of the TV downturn was due to falling free-to-air advertising, which dropped 9.9 per cent over the year, while conditions sharply worsened in the fourth quarter. Combined with writedowns of TV contracts, it produced a $13m loss. Offsetting the falls in television were gains in the audio division.Revenue jumped 1.4 per cent to $429.9m thanks to digital revenue growing to $6.5m, offsetting declines in advertising spending across metro and regional radio broadcasting. Publishing division revenues slipped 3.1 per cent to $187m, with advertising down and subscription revenue holding flat. Overall, Southern Cross Media group reported $1.9bn in revenue, which was down 4.5 per cent.Despite weaker advertising revenue, which led to a $125m hit for the business, Southern Cross says it gained audiences across its television network and audio segments.Digital revenue across platforms like 7plus, Listrnr, and The Nightly grew by double digits.Southern Cross chief executive Rohan Lund, who was appointed in May this year, cited a challenging economic environment. “Trading conditions were difficult, particularly in television through Q4, and revenue came in below where we expected. Share gains and cost discipline partially offset that, and EBITDA (earnings before interest, tax, depreciation and amortisation) finished above our revised guidance,” he said.Despite this, Mr Lund was upbeat about the size and reach of the business. “We now reach more than 20 million Australians a month, and each of our three businesses – television, audio and publishing – strengthened its market position during FY26,” Mr Lund said. “While we expect conditions to stay subdued, our focus doesn’t change: bring Australians together through content they love and trust, turn that connection into audiences that work for advertisers and run the business with discipline and unity.”