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SouthernCrossAustereoAnnualReport2013CONTENTS2SouthernCrossAustereoIsEntertainingAustralia4BigBrandsDeliveringEnormousEngagement6EntertainingRegionalTVAudiences8LeadingRadioAustraliaWide10ExponentialGrowthinDigitalMedia12InnovationsfortheFuture14GivingBacktoLocalCommunities16ChairmanandCEOsReport18BoardofDirectorsandLeadershipTeam21FinancialsSouthernCrossAustereoisAustraliasleadingmediaandentertainmentcompany. SouthernCrossAustereoAnnualReport20131REACHINGMOREAUSTRALIANSTHANANYOTHERMEDIACOMPANY1NielsenMetropolitanRadioSurveysSurvey42013Mon-Sun530amto12MNAllPpl10cume2QLDNSWVICAverageDailyReach1mincumereach.TotalPeople.1712-306133NielsenOnlineRankingReportDomesticJuly2013AverageDailyUB4NielsenOnlineRankingReportDomesticJuly2013AverageDailyUB5ZuumSocialMediaReportingSouthernCrossAustereoFacebookandTwitterDataJuly20136RegionalTAM.QLDNSWVICTASCombinedAggregateMarkets.AverageDailyReach1mincumereach.TotalPeople.0200-0200.1712-306134.6MSOUTHERNCROSSAUSTEREOREACHESOVER4.6MILLIONPEOPLEINTHE5METROMARKETSEACHWEEK12.1MTHETRIPLEMNETWORKREACHESOVER2.1MILLIONAUSTRALIANSEACHWEEK113THSOUTHERNCROSSAUSTEREOISONEOFAUSTRALIASTOP20ONLINEPUBLISHERSANDISTHE13THBIGGESTMOBILEPUBLISHER479SOUTHERNCROSSAUSTEREOHAS79SHAREOFTHEAUSTRALIANSOCIALRADIOMARKETONTWITTER52.44MOVER2.44MILLIONAUSTRALIANSVIEWSOUTHERNCROSSAUSTEREOSTVNETWORKSEVERYDAY63MTHETODAYNETWORKREACHESOVER3MILLIONAUSTRALIANSEVERYWEEK11STSOUTHERNCROSSAUSTEREOHASTHETOPTWORADIOBRANDSONMOBILERANKEDONDAILYAVERAGEMOBILEUBS344SOUTHERNCROSSAUSTEREOREACHES44OF2539YEAROLDAND41OF2554YEAROLDMETROLISTENERSEACHWEEK12MONAVERAGESOUTHERNCROSSTENREACHES2185688PEOPLEEVERYDAY271SOUTHERNCROSSAUSTEREOHAS71SHAREOFTHEAUSTRALIANSOCIALRADIOMARKETONFACEBOOK5 SouthernCrossAustereoAnnualReport20132SOUTHERNCROSSAUSTEREOISENTERTAININGAUSTRALIASouthernCrossAustereodeliversentertainmentsolutionsacrossanunrivalledportfolioofAustralianmultimediabrands.Wehavethebiggestshowsthebesttalentandthemostexcitingeventscoupledwiththewidestreachofanyentertainmentmediacompanyinthecountryengagingwithmoreconsumersonlineandsociallythananyoneelse.SouthernCrossAustereoistheonlytrulynationwidemediaproviderandcreatorofthemostliveandmostawesomecontentinAustraliawithmorehoursthananyotherbroadcastmediainthecountry.Thismeanswecanpotentiallyconnectbrandswith95ofAustralianseachweekviaourregionalfree-to-airTVnetworksnationalradionetworksonlinemobileanduniqueone-offevents.Thiswiderangeofmediaofferingsallowsustoprovideinventiveinteractiveandcrossplatformcampaigns. SouthernCrossAustereoAnnualReport20133TheAustralianmedialandscapeismovingfasterthaneverbefore.Notonlydoconsumershavemoremediaoptionsbutthewaytheyengagewiththemisconstantlychanging. SouthernCrossAustereoAnnualReport20134BIGBRANDSDELIVERINGENORMOUSENGAGEMENTMuchmorethansimplyradioandTVSouthernCrossAustereoiscommittedtobeingatrulyunifedmediacompanyacrossabroadrangeorelevantanddiversifedmediachannels.SouthernCrossAustereosassetsinclude78commercialradiolicences104televisionchannelsAsuiteodigitalradiostations105leadingwebsitesand17mobilesitesThefrstAustralian-ownedmusicstreamingserviceUniquecontentcreationLiveeventswithworld-renownedartistsAccesstotheglobesbiggestcelebritiesHome-grownhouseholdnamessuchasHamishBlakeandAndyLeeKyleSandilandsJackieOEddieMcGuireMickMolloyMerrickWattsFifBoxJulesLundJamesBrayshawandAndrewJohnstonameonlyaew.ThedepthandbreadthoSouthernCrossAustereosmediaportolioanditsmulti-dimensionalbusinessmodelmeansitsabusinessreadytocapitaliseontheevolvingwayAustraliansinteractwithandconsumeentertainmentcontent.SouthernCrossAustereotakesprideinprovidingbrandsandadvertiserswitheectiveanddiversemarketingsolutionsbycreatinganddeliveringdesirablecontentto95oAustraliansacrossmultiplemediachannels. SouthernCrossAustereoAnnualReport20135MuchmorethansimplyradioandTVSouthernCrossAustereoiscommittedtobeingatrulyunifedmediacompanyacrossabroadrangeorelevantanddiversifedmediachannels. SouthernCrossAustereoAnnualReport20136ENTERTAININGREGIONALTVAUDIENCESAFFILIATIONPARTNERSHIPSSouthernCrossAustereosregionaltelevisionassetshavesecuredmedium-termafliationcontractswithNetworkTenandtheSevenNetwork.Thesecontractshavereinvigoratedourafliaterelationshipsandhelpedocusthesepartnershipsondeliveringmaximumengagementorourregionalaudiences.Withengagementacrossallpartsothebusinessensuringincreasedcollaborationthesepartnershipswilldelivergreatercross-platormopportunitieswithourregionalradioassetsandenableconsistentbrandingorbothmetroandregionalaudiences.DATACASTINGCHANNELSSouthernCrossAustereohassuccessullypartneredwithNetworkTenandTVSNtoairTVSNorthelasttenmonthsintheouraggregatedmarkets.Thismedium-termcontracthasestablisheddiversityinthedatacastingcategorywhilstcreatingadeeperrelationshipwithTVSNanditsparentcompanytheDirectGroup.InthelastsixmonthswehavealsoexpandedourdatacastingoeringbycreatingAspireTV.AspireTVisastand-aloneSouthernCrossAustereooeringandhasbeenpartneredwithBrandDevelopers.HYBRIDBROADCASTBROADBANDTELEVISIONHybridBroadcastBroadbandTelevisionknownasHBBTVisamajorEuropeaninitiativeaimedatharmonisingthebroadcastandbroadbanddeliveryoentertainmenttotheendconsumerthroughconnectedTVsandset-topboxes.Thisallowsbroadcasterstoseamlesslycombinebroadcastandinternetservicesontelevision.KeyexecutivesfromSouthernCrossAustereohavebeenworkingwiththeindustrybodyFreeviewontheproposedrolloutofHBBTV.1SourceRegionalTAM.QLDNSWVICTASCombinedAggregateMarkets.AverageDailyReach1mincumereach.TotalPeople.0200-0200.1712-30613 SouthernCrossAustereoAnnualReport20137SouthernCrossAustereostelevisionportfolioismadeupofSouthernCrossTenSouthernCrossTVNineONE117TWO7MATEGOandGEMreachingmorethan2.44millionregionalviewerseveryday1 SouthernCrossAustereoAnnualReport20138LEADINGRADIOAUSTRALIAWIDETHETODAYNETWORKTheTodayNetworkisoneoAustraliasleadingentertainmentbrands.TheTodayNetworkisdrivenbyitslistenersloveohitmusicandpopculture.EverythingTheTodayNetworkdoisHotRightNowwiththebiggesthitsandthebestgroundbreakingcontentromthehottestshowsaroundthecountry.Heardinallmetromarketsaroundthecountryalongwith41regionalstreamsfromcoasttocoastTheTodayNetworkisthehomeofmassivehouseholdnamessuchasHamishandAndyKyleandJackieOandFiandJules.ItsnowonderthatTheTodayNetworkcontinuestoleadthewayasAustraliasmostlistenedtonetworkwithover3millionmetrolistenerstuningineachweekandover2.3millionuniquebrowsersonlineeachmonthcombiningthehottesthitmusicexclusivecelebritycontentandthemosttalkedaboutshows.TheTodayNetworkisclearlythenumberonenetworkinAustraliaforfemalesaged1039.TRIPLEMTripleMisthehomeofrockinBrisbaneMelbourneSydneyandAdelaideandhashadAustraliansrockingforover30years.ThisyearTripleMenteredthePerthmarketorthefrsttimeonDigitalRadio.ProudlyAussieTripleMplaysmusicthatrockswithshowsthateatureiconictalentthatgetpeopletalking.LikeitslistenersTripleMisdowntoearthproudlylocalandnotaraidtobreaktherules.TripleMtargetsmenwithamixorealrockmusiccomedyromthelikesoMickMolloyandMerrickWattsandextensivecoverageofAFLandNRLonweekends.ItsthismixorocksportandcomedythathasseenTripleMdominateallmenaged2554.LOCALWORKSTheLocalWorksnetworkcomprises31stationsthatbroadcastregionallyonbothAMandFMchannelsrightacrossthecountry.OvertimeLocalWorkshasgonefromstrengthtostrengthwithsomestationscelebratingaheritageofover80years.AllLocalWorksstationspridethemselvesonbeingconnectedtothecommunityineveryway.Theyrepassionateabouttheirlistenersandgivingbacktothecommunity.Theyrepassionateabouttheirmusictooplayingthegreatesthitsfromthelast50yearsthatpeoplelovealwaysfamiliarandneverweirdoredgy. SouthernCrossAustereoAnnualReport20139BydeliveringthebestinentertainmentmusicsportcomedyandlocalcontentSouthernCrossAustereocontinuestoleadthewaywithAustralianradiosmostinnovativecontentforlistenersbetweentheagesof1054. SouthernCrossAustereoAnnualReport201310EXPONENTIALGROWTHINDIGITALMEDIAWithover80websitesalmost170FacebookandTwittercommunitiesand20responsivemobilesiteswereachover700000AustraliansNielsenUniqueAudienceandtwomillionuniquebrowsersinanygivenmonth.1OurmarketleadingdigitalcontentvastsocialengagementandsignifcantmobilepenetrationmeansSouthernCrossAustereoisperectlyadaptedtocapitaliseontherapidshittodigital.DIGITALCONTENTOurdigitalcontentstrategycontinuestoprovideexponentialgrowthwiththeTodayandTripleMNetworksbothdeliveringhighdouble-digitgrowthoverthepast12months.Combinedaudiencesuniquebrowsersacrossthetwonetworkssawanaveragemonthlyincreaseo29overthepreviousperiod.2CapitalisingonthesuccessofourAFLandNRLbroadcaststreamingpartnershipsanduniqueline-upotalentTripleMsocusondeliveringsportandrealmusicthroughitsentertainingandirreverentlterhasseenaudiencegrowthof41year-on-year.3TheTodayNetworkcontinuestodominatetheradiomarketdigitally.Our2013contentstrategyhasfocusedonwhatshotrightnoworourans.Scooplaourmulti-platormcelebrityandentertainmentbrandinparticularhasseenincrediblegrowthwhichcombinedwithNewseedandTrendingNowhasdelivereda24year-on-yearincreaseinmonthlyuniquevisitors.DIGITALVISIONCONTENTOnlinevideoconsumptionisexplodingintermsoshortsnackablecontentaswellaslongerormentertainment.AsTVaudiencesragmentalongsidemobileandsocialonlinevideoissomeothemostsought-aterdigitaladvertisinginventorysomuchsothatmanypublishersarestrugglingtoulflmarketdemand.Tocapitalisewellsoonbeannouncingtherolloutoamajornewvideoinitiativethatwillopenupsignifcantvideoopportunitiesorclientsimmediatelyupondeployment.InadditionvisualisationoradioadvertisingviadigitalstreaminginparticularonsmartphonesisamajortrendoverseaswhichweexpecttosoonbereplicatedinAustralia.ToensureSouthernCrossAustereoleadsthemarketintheAustralianrolloutwealreadyhaveasolidstrategyinplacetoensurewemakethemostothisopportunity.SOCIALOurpeopleandbrandshaveallowedustoharnessthesocialrevolutionlikenootherAustralianmediacompany.Currentlywecommand26oAustraliastotalbroadcastindustryanbaseonFacebookandaremarkable44ofthebroadcastindustryanbaseonTwitter.4IntheJunequarterSouthernCrossAustereocontrolledsixothetoptenAustralianradioanpagesonFacebookwithrespecttoconsumerengagementprovingnootherAustralianbroadcastercanclaimeitherthescaleorengagementoourbusinessonsocialmedia.InadditionwecontinuetoinvestindevelopingnewwaysorconsumerstointeractwithourbrandsandcontentthroughourrapidlyexpandingInstagramVineandTumblrcommunities.MOBILEMobileisinthemidstore-defninglistenersrelationshipwithradioandSouthernCrossAustereoisprimedtocapitaliseonanddominatethespace.Currentlythe13thlargestmobilepublisherinthecountryaveragedailyuniquebrowsers545ofourtotaldigitalaudienceisnowcomingfromamobiledevice6rankingthebusinessfth7intermsodigitalaudienceconversiontomobileaheadoallotherAustralianBroadcastersandmainstreampublishers.CONTENTMARKETINGWithconsumersincreasinglydifculttoengageandbrandsinvestingheavilyinownedmediachannelscontentmarketingisexploding.TomeetthisneedSouthernCrossAustereoissuccessullyleveragingitssignifcantresourcesandhelpingitsclientssatisythisincreasingdemandorcontent.Collaborationssuchastheaward-winningRoadtripForevercampaigndevelopedbySouthernCrossAustereoinconjunctionwiththeVictorianGovernmentsTransportAccidentCommissionaregoodexamplesothepowerulcontentsolutionswerecreating.ECOMMERCESouthernCrossAustereoiscommittedtostrengtheningtherelationshipithaswithAustralianconsumersbeyondourmediabrands.InFY2013thebusinessdelivered1.1mindigitaltransactionsthroughouronlineauctionsiteMyLocalAuction.SouthernCrossAustereohasastrongcommitmenttostrengtheningthissegmentoourdigitalbusinessinthefollowing12months.1NielsenOnlineAnswersAverageUniqueAudienceAprilJune20132NielsenMarketIntelligenceFY12vFY13AverageDailyUniqueBrowsers3NielsenMarketIntelligenceAverageDailyUniqueBrowsersFY2012vFY20134July20145NielsenMarketIntelligenceAverageDailyUniqueBrowsersJuly20136NielsenMarketIntelligenceAverageDailyUniqueBrowsersonmobileortabletJune20137NielsenMarketIntelligenceAverageDailyUniqueBrowsersRankingofTop50AustralianDigitalPublisherspercentageoftotalaudiencebeingonamobiledevice SouthernCrossAustereoAnnualReport201311DigitalisinthemidstoredefningthewayAustraliansconsumecontentandmedia.SouthernCrossAustereohasinvestedheavilyindigitalmediatransormingthebusinessintoasociallydrivendigitalandcontentpowerhouse. SouthernCrossAustereoAnnualReport201312INNOVATIONSFORTHEFUTURESONGLInOctober2012SouthernCrossAustereoannounceditsjointventurepartnershipwithSonyMusicAustraliaandUniversalMusicAustraliainthedigitalmusicventureDigitalMusicDistributionPtyLtd.ThepartnershipbroughttogetherthreeothecountrysmostinfuentialandinnovativecontentcreatorsandthedistributioncloutoSouthernCrossAustereo.DeepintegrationoSonglintoSouthernCrossAustereosmediaassetsallowsseamlessmigrationoaudiencesallowingustocommercialisetherelationshipwehavewithouransinnewandinterestingways.WithSouthernCrossAustereotakingovertheproductroadmapanddevelopmentalongwithsignicantmarketingactivityalsoledbySouthernCrossAustereoSongldelivereditsstrongestevermonthtodateinJune.DATAANDITSIMPACTONOURCLIENTANDCONSUMERRELATIONSHIPSDataprovidesenormousopportunitiestobringecienciestothewayclientsinteractwithouraudiencesandtransactwithourbrands.Asmorepeoplechoosetointeractwithusdigitallywecanoerourclientssignicantenhancementsinaudiencetargetingthroughdemographicsbehaviouralcharacteristicsandlocationawareness.WeexpecttomakeseveralannouncementsinthisspacethroughoutFY2014thatwilldeliversignicantenhancementstoourclientsresults.PARTNERSHIPSOurskillsasacontentproducerandsocialpowerhousecreateopportunitiestopartnerwithgloballeadersintechnologyandcontentdistributiontothebenetoourclientscommunitiesandshareholders.InJuneSouthernCrossAustereosignedamediarstcollaborationwithTwitterasitsrstAustralianpartnerorTwitterAmpliy.ThepartnershiprefectsthestrengthooursocialinfuenceandwillseebothSouthernCrossAustereoandTwitterleverageourcontentandclientpartnershipsacrossTwittersrapidlyexpandingaudience.Anumberootherpartnershipswillbeannouncedasweheadinto2014toprovidegreaterdepthtotheengagementwecanoerclientswheninteractingwithouraudiences. SouthernCrossAustereoAnnualReport201313Digitalisreinventingthewayweengagewithourclientsfansandcommunitiespresentingincredibleopportunitiestoleverageourrelationshipsinnewwaysandbringvaluetoall. SouthernCrossAustereoAnnualReport201314GIVINGBACKTOLOCALCOMMUNITIESSouthernCrossAustereoiscommittedtousingitsunparalleledmediacoverageandentertainmentcredentialstoprovideadditionalserviceandsupporttolocalcommunitiesacrossregionalAustraliaandabroad.MYCOMMUNITYCONNECTMyCommunityConnectisareeonlineeventlistingservicekeepingregionalcommunitiesacrossAustraliainormedaboutwhatshappeningintheirlocalarea.Thisinitiativehasbeendesignedornot-or-proftorganisationscommunityclubsandlocalcharityeventsandissupportedbysubstantialTVandradioairtimewithanemotivemarketingcampaignthatfeatureslocalsattendingeventsintheirarea.ListedeventsarealsoprofledonadailyandweeklybasisacrossTVandradio.ThroughMyCommunityConnectSouthernCrossAustereoencourageslocalstosupporttheircommunitiesbyattendingtheseeventsclosetohome.Italsohelpstoraisemillionsodollarseveryyearorlocalnot-or-proftorganisations.GIVEME5FORKIDSGiveMe5forKidsisafundraisinginitiativesupportedbyover40radioandTVstationsacrossregionalAustralia.Foralmost20yearsthemonthofJunehasbeendedicatedtoraisingmuch-neededundsorlocalcommunityhospitals.InthattimeitsgrownintooneoSouthernCrossAustereosmostsuccessulcommunityeventscollectivelyraisingover2.5millionthisyear.Alldonationsreceivedstaylocalandgodirectlytothechildrenswardineachmarkethelpingtoprovidethebestpossiblecareorsicklocalchildrenandtheiramilieswhentheyneeditmost.In2013thecampaignwasfurthersupportedbyateamofambassadorsRodgerCorserAustralianactorMarkGableChoirboysleadsingerMelindaSchneiderAustraliancountrymusicartistandGoldenGuitarwinnerMerrickWattscomedianandPeterSpidaEverittpastAFLplayer.IBELIEVEINCHRISTMASIBelieveinChristmasisSouthernCrossAustereosannualChristmasToyDriveinsupportoTheSalvationArmyChristmasAppeal.Thiscommunityinitiativerunsacross40regionalmarketsinNovemberandDecembereachyear.ToysarecollectedandsenttoTheSalvationArmywhodistributetochildrenandamiliesinneedduringthefestiveseason.LastChristmasover20000toysweredonatedromacrossthecountry.HABITATFORHUMANITYHANDSANDHEARTSBUILDSouthernCrossAustereoisproudtopartnerwithHabitatforHumanityAustraliaontheirHandsandHeartsbuildproject.ForthepastthreeyearsSouthernCrossAustereohassentemployeestoNepalVietnamandCambodiatohelpbuildsaeanddecenthousesororphanedchildren.Theprojectalsoocusesonhelpingvulnerablechildrendevelopincome-generatingskillsandprovidesocialsupporttocontributetotheiroverallgoalopovertyreduction.DELIVERINGFREETVTOREMOTEAUSTRALIAWITHVIEWERACCESSSATELLITETELEVISIONVASTAswellasbroadcastingabroadrangeotelevisioncontentacrossthecountrySouthernCrossAustereoplaysasignifcantroleindeliveringtelevisionservicestoAustraliansinremoteareasothecountrythroughtheViewerAccessSatelliteTelevisionVASTservice.Aullrangeodigitalcommercialchannelsarebroadcastviasatellitetoanestimated80000householdswhowouldotherwisenothaveaccesstoree-to-airtelevision.UnderouragreementwiththeFederalGovernmentallregionalree-to-airtelevisionnetworkssendtheircompleteddailycontenttoSouthernCrossAustereosCanberraplayoutheadquarters.ThisserviceprovidesVASTcustomerswithaccesstoover20FTAtelevisionchannelsthatwouldotherwisenotbeavailable. SouthernCrossAustereoAnnualReport201315Examplesincludecommunityeventsandfundraisinginitiativessatellitetelevisionservicesandnationwideemploymentwithover2500employeesworkingacross63markets. SouthernCrossAustereoAnnualReport201316CHAIRMANANDCEOSREPORTDearShareholdersWehavepleasureinprovidingyouwithSouthernCrossAustereosAnnualReportfortheyearended30June2013.Onceagainwehaveacedachallengingadvertisingmarketandhavecontinuedtodeliverasolidresultcapitalisingonstrongsalesrelationshipsandocussingoncostcontrolandinvestmentincontent.SouthernCrossAustereoreportedrevenueof653.1millionafallof5.0from687.3millionintheprioryear.EBITDAtotalled211.0millionfortheyeardownfrom225.8millionintheprioryear.Netprotaftertaxwas96.1millionupfrom95.0millionintheprioryear.InFebruary2013theGroupdivestedoasubsidiarythatheldtwocommercialFMradiobroadcastinglicencesintheSunshineCoastregion.Thissaleresultedinaprotondisposalof10.4millionwhichisincludedinthetradingresult.OurmetropolitanradiobusinesshasseensomesharelossovertheyearhoweverwesawsomeimprovementinQ4ofFY13.Thebusinesssrevenuesfell4.0to262.5millionanditcontinuestooperateinachallengingshorttermmarket.CostshavebeenimpactedbyincreasinginvestmentincontentandincreaseddigitalaccesseesortheDabspectrum.AsaconsequenceEBITDAmarginhasfallento31.883.4millionfrom35.8intheprioryear.EventhoughcommercialadvertisingmarketshavebeensubduedaudiencedeliveryonourTripleMnetworkhasimproveddeliveringsolidratings.TheTodaynetworkstationscontinuetobeleadersinFMradiohoweveritisamuchmorecompetitivemarketthanpastyears.Theregionalradioandtelevisionbusinessproducedrevenuefromoperationsof390.6millionwhichisdown5.6ontheprioryear.WhilstradiorevenueimprovedmarginallyTVrevenuesfell31.7millionontheprioryear.CostcontrolisessentialindrivingimprovementinperormanceintheregionalbusinessandastrongocusonthisresultedinanincreaseintheEBITDAmarginof1.8yearonyearto32.7127.6million.WehaveagreednewafliationtermswithSevenNetworkandNetworkTenTENwhichlaystheoundationorourtelevisionoeringoveratleastthenextthreeyears.TelevisionrevenuescontinuetoacechallengeswiththeTENproductdeclininginratingsoverayearonyearbasis.Thisresultedintelevisionmarketsharealsodeclining.WearesupportiveothenewdirectionthatTENistakingandexpectthatthiswillproduceimprovementsinratingsoverthecomingyears. SouthernCrossAustereoAnnualReport201317RHYSHOLLERANCEOMAXMOORE-WILTONCHAIRMANWearepleasedtohavemadetwosignifcantseniorappointmentsduringthesecondhalotheyearwhichwillpositionusortheutureinNationalSalesandDigitalStrategyandInnovation.Aspartoourongoingimprovementdrivewehaveengagedourinternalexpertisetotakeareshlookatanumberokeyoperationalareascoveringcontentproductiondistributionandplayout.Severalkeyprojectshaveemergedwhichwillbeocussedondeliveringthenextphaseotheintegratedmulti-mediamodelweoperatewithin.Theprojectsareexpectedtoresultinurtherefcienciesinthecomingyears.Finallywehavecontinuedourproudtraditionocontributingtoourlocalcommunities.MyCommunityConnectcontinuestodeliveropportunitiesthatallowthousandsocommunitygroupsaccesstoourmanymediaassetstopromotetheirnot-for-protcausesandnowhasover31000memberships.Thisdonationoairtimeequatestomanymillionsodollarsoin-kindsupportandweareproudotheeectthisactivityhasonthesuccessotheselocaleventsandcharities.ThisisinadditiontoourownundraisingactivitiesorGiveMe5ForKidswhichoperatesthroughoutourregionalbusinessandisanintegralpartoourlocalcommunities.SomeothecornerstonecommunityinitiativesotheyearlastyearincludeGiveMe5ForKidsraisingover2.5millioninthe2013appealover12.2millionsince2000forimprovedresourcesandequipmentorchildrenshospitalsinourregionalcommunitiesIBelieveinChristmasinpartnershipwiththeSalvationArmydonatedover22000toystochildreninneedinDecember2012MattJos200kfor200kidsraising425031forchildreninneed92.9FMsparticipationinTelethonraising500407over1millionoverthepastfouryearswithdonationsfocussingonthePrincessMargaretChildrensHospitalandB105ChildrensHospitalAppealraising434562in2012over11millionin19yearsofparticipation.OnbehalfoftheBoardofDirectorswewouldliketothankourgroupotalentedandcommittedpeoplewhostrivetoproduceexcellenceeveryday.Wewouldalsoliketothankourshareholderswhocontinuetoshowsupportorourgroup. SouthernCrossAustereoAnnualReport201318BOARDOFDIRECTORSANDLEADERSHIPTEAMMAXMOORE-WILTONCHAIRMANMaxMoore-WiltonisthechairmanotheBoardandamemberoftheRemunerationandNominationCommittee.PriortohisappointmentMaxhadadistinguishedcareerinboththeprivateandpublicsectorsandwassecretarytotheDepartmentoPrimeMinisterandCabinetfromMay1996toDecember2002whereheoversawundamentalreormotheCommonwealthPublicService.MaxcurrentlyalsoservesaschairmanoASXlistedSydneyAirportSYDandSouthernCrossAirportsCorporationHoldingsLimitedtheparentcompanyotheoperatoroSydneyKingsfordSmithAirport.LEONPASTERNAKDEPUTYCHAIRMANLeonPasternakisthedeputychairmanoftheBoardandisacommitteememberotheNominationRemunerationandAuditRiskCommittees.UntilJuly2010LeonwasaseniorcorporatepartneratFreehillsnowHerbertSmithFreehillsspecialisinginmergersandacquisitionspublicfnanceandcorporatereorganisations.LeoniscurrentlyViceChairmanandManagingDirectorwithMerrillLynchMarketsAustraliaPtyLimitedasubsidiaryofBankofAmericawithresponsibilityorthefnancialinstitutionsgroupandmergersandacquisitions.TONYBELLDIRECTORTonyBellisthechairmanotheRemunerationandNominationCommitteeandamemberotheAuditandRiskCommittee.TonyisoneoAustraliasmostdistinguishedmediaoperatorswithover30yearsexperienceintheAustralianradioandree-to-airtelevisionindustry.AsmanagingdirectoroSouthernCrossBroadcastingAustraliaLimitedfrom1993to2007TonygainedextensiveexperienceinregionalandmetropolitanmediaandwasinstrumentalinitsormationasoneoAustraliasleadingmediacompanies.MICHAELCARAPIETDIRECTORMichaelCarapiethasmorethan30yearsexperienceinthefnancialsector.MichaelretiredromMacquarieGroupin2011whereheheldanumberoseniorappointmentsincludingasanExecutiveCommitteemember.CurrentlyMichaelservesaschairpersonoSASTrusteeCorporationNSWStateSuperadirectoroStateSuperFinancialServicesAustraliaLtdandChairpersonoSafetyReturntoWorkandSupportBoardthatcomprisestheWorkCoverAuthorityoNSWLifetimeCareandSupportandMotorAccidentsAuthority.HeisalsoadirectoroCleanEnergyFinanceCorporationandisontheAdvisoryBoardsofNortonRoseAustraliaandTranseldHoldings.MARINADARLINGDIRECTORMarinaDarlingisacommitteememberoftheAuditandRiskCommittee.Marinaisanexperiencedcompanydirectorandhasworkedinanexecutivecapacityinthelegalandcorporatefnancesectorsandpropertydevelopment.Marinaiscurrentlyanon-executivedirectorolistedcompanyTheMirvacGroupandhaspreviouslybeenanon-executivedirectoroabroadrangeolistedcompaniesgovernmentbodiesandotherorganisationsincludingArgoInvestmentsLimitedSouthernCrossBroadcastingLimitedDeaconsLawyersNationalAustraliaTrusteesLimitedandSouthernHydroLimited. SouthernCrossAustereoAnnualReport201319CHRISDEBOERDIRECTORChrisdeBoeristhechairmanotheAuditandRiskCommitteeandamemberotheRemunerationandNominationCommittee.ChrishashadvariouscareersininvestmentbankingbusinessconsultingstockbrokinganddirectinvestmentandthroughthemgainedexperienceininitialpublicoeringsmergersandacquisitionscorporatereorganisationsjointventuresbondissuesandfnancialadviceacrossLondonHongKongAustraliaandNewZealandinbothdomesticandcross-borderdeals.PETERHARVIEDIRECTORPeterHarvieisamemberotheRemunerationandNominationCommitteeandhasmorethan45yearsexperienceintheadvertisingmarketingandmediaindustries.PriortohisappointmentPeterwastheexecutivechairmanoAustereoGroupLimitedfrom2001untilMay2011executivechairmanofAustereoPtyLtdmanagingdirectorotheTripleMNetworkandounderandmanagingdirectorotheClemengerHarvieadvertisingagencyrom1974to1993.RHYSHOLLERANCHIEFEXECUTIVEOFFICERRhysHolleranhasadistinguishedcareerinmediahavingworkedintheindustryor24yearssince1987.HehasundertakenavarietyomanagementrolesincludingGeneralManagerof101.1TTFMandGold1041992to1997andManagingDirectorofR.GCapitalRadio19972004.RhyswasappointedchieexecutiveofceroSouthernCrossMediaGroupin2009andwentontooverseethehighlyvisiblemergerbetweenAustereoandSouthernCrossin2011andremainsintheleadershippositionorthecombinedbusiness.STEVEKELLYCHIEFFINANCIALOFFICERSteveKellyhasaBachelorofBusinessBankingandFinancefromtheUniversityofSouthAustralia.HeisaCPAandFellowotheAustralianInstituteoCompanyDirectorsandhascompletedtheFordBusinessLeadershipProgramconductedbytheUniversityofMichiganUSA.SteveKellycommencedaschiefnancialofceroSouthernCrossMediaGroupon21April2010.Priortothishespenthisearlycareerintheaccountingproessionbeoretakingonfnanceandmanagementroles.StevehasmanagedITdepartmentsandlarge-scaleacquisitionsandheldseniorpositioninAustraliaAsiaPacifcandtheUSA.GUYDOBSONCHIEFCONTENTOFFICERGuyDobsonwasNationalHeadofContentortheentireAustereoGroupandaveteranocommercialbroadcastinghavingworkedintheindustryinexcesso25years.GuysradioexperienceextendsromworkingoverseasinUKradioandthroughoutEuropetoVancouverinCanadabothinon-airandprogrammingpositions.In2002GuyjoinedEntertainmentStrategyProgrammingPtyLtdAustraliasleadingradioconsultancyrunbythegreatGregSmith.WhileatESPGuycontinuedtoconsulttoAustereoandanumberootheroverseasclientsincludingstationsintheUKGermanyThailandChinaandMalaysia. SouthernCrossAustereoAnnualReport201320 FINANCIALSSouthernCrossAustereoAnnualReport201321ContentsCorporateGovernanceStatement22DirectorsReport25AuditorsIndependenceDeclaration36StatementoComprehensiveIncome37StatementoFinancialPosition38StatementoChangesinEquity39StatementoCashFlows40NotestotheFinancialStatements41DirectorsDeclaration77IndependentAuditorsReport78AdditionalStockExchangeInormation80CorporateDirectory81NotestotheFinancialStatements1.SummaryoSignicantAccountingPolicies412.ProtortheYear483.RemunerationoAuditors494.IncomeTaxExpense505.DividendsPaidandProposed516.CurrentAssetsCashandCashEquivalents517.CurrentAssetsReceivables518.Non-CurrentAssetsReceivables529.Non-CurrentAssetsInvestmentsAccountedorUsingtheEquityMethod5210.Non-CurrentAssetsOtherFinancialAssets5411.Non-CurrentAssetsPropertyPlantandEquipment5412.Non-CurrentAssetsIntangibleAssets5613.DeerredTaxes5914.Subsidiaries6015.CurrentLiabilitiesPayables6016.CurrentLiabilitiesProvisions6017.Borrowings6118.DerivativeFinancialInstruments6319.Non-CurrentLiabilitiesProvisions6420.ContributedEquity6421.ReservesandOtherEquityTransactions6522.AccumulatedLosses6623.EarningsperShare6624.ReconciliationoProtaterIncomeTaxtoNetCashInfowromOperatingActivities6725.FinancialRiskManagement6726.ParentEntityFinancialInormation7027.Share-BasedPayments7128.RelatedPartyDisclosures7329.SegmentInormation7530.Commitments7631.EventsOccurringaterBalanceSheetDate76 SouthernCrossAustereoAnnualReport201322CORPORATEGOVERNANCESTATEMENTFORYEARENDED30JUNE2013ThisstatementoutlinesSouthernCrossMediaGroupLimitedscorporategovernancerameworkandpracticesintheormoareportagainsttheAustralianStockExchangeASXCorporateGovernancePrinciplesandRecommendations2ndeditionPrinciples.Unlessspeciedotherwiseallotheinormationcontainedinthisstatementiscurrentasat20August2013.TheBoardoSouthernCrossMediaGroupLimitedisresponsibleorthecorporategovernanceoSouthernCrossAustereocomprisingSouthernCrossMediaGroupLimitedtheCompanyanditsrespectivesubsidiaries.TheBoardguidesandmonitorsthebusinessandaairsotheCompanyandtheGrouponbehaloshareholderswithmanagementtoorecognisingtheirresponsibilityintheimplementationandmaintenanceoaneectivesystemocorporategovernance.Principle1LaySolidFoundationsforManagementandOversightTheBoardisresponsibleorthecorporategovernanceandinternalworkingotheCompanyandtheGroup.TheBoardsrolesandresponsibilitiesareormalisedinaBoardCharterwhichisavailableontheSouthernCrossAustereowebsitewww.southerncrossaustereo.com.au.FullBoardmeetingsareheldapproximatelytentimesperyearwithothermeetingscalledasrequired.DirectorsareprovidedwithBoardreportsinadvanceoBoardmeetingswhichcontainsucientinormationtoenableinormeddiscussionoallagendaitems.Allnon-executivedirectorshavereceivedaletteroappointmentaddressingthemattersrecommendedbythePrinciples.SeniorExecutivePerformanceEvaluationRhysHolleranwasappointedChieExecutiveOcerCEOinDecember2009andStephenKellytheChieFinancialOcerCFOwasappointedinApril2010.TheNominationandRemunerationCommitteereviewstheperormanceotheCEOandCFOannuallyandreportsitsndingstotheBoard.Theperormanceoallexecutivesisreviewedatleastannuallybytheirimmediatesupervisors.Perormanceisevaluatedagainstpersonalnancialandcorporategoals.TheBoardhasadoptedaSeniorExecutiveEvaluationPolicywhichisavailableontheSouthernCrossAustereowebsite.Principle2StructuretheBoardtoAddValueCompositionofBoardNamePositionMaxMoore-WiltonNon-ExecutiveChairmanappointed27February2007LeonPasternakDeputyChairmanandLeadIndependentDirectorappointed26September2005ChrisdeBoerIndependentDirectorappointed20September2005TonyBellIndependentDirectorappointed2April2008MichaelCarapietNon-ExecutiveDirectorappointed10March2010PeterHarvieNon-ExecutiveDirectorappointed1August2011MarinaDarlingIndependentDirectorappointed12September2011ProlesothesedirectorsincludingdetailsotheirskillsexperienceandexpertisearesetoutintheDirectorsReport.BoardIndependenceTheCompanypolicyrefectsRecommendation2.1othePrinciplesinthatitrequiresthatthemajorityodirectorsmustbeindependent.AsatthedateothisreporttheBoardcomprisesamajorityoindependentdirectorsensuringcompliancewithRecommendation2.1othePrinciples.TheBoardregularlydetermineswhetherdirectorsareindependentinviewotheirinterestsasdisclosedtotheBoard.InmakingthisdeterminationtheBoardhasreerencetothetestorindependencecontainedinthePrinciplesessentiallywhetheradirectorhasaninterestthataectstheirabilitytoexerciseunetteredandindependentjudgment.DirectorswitharangeoqualicationsexpertiseandexperienceareappointedtotheBoardtoenableittoeectivelydischargeitsdutiesandtoaddvaluetotheBoardsdeliberations.TheCompanyhasestablishedanIndependentBoardCommitteecomprisingtheIndependentBoardMemberswhomeetasrequiredtodiscussrelevantmattersparticularlywheretheremightbeaconfictointerestwithnon-independentdirectors.TheChairmanotheBoardisMaxMoore-Wilton.MrMoore-WiltonisnotindependentasdenedbythePrinciplesgiventhatinthelastveyearshehasbeeneitheraconsultantorsenioremployeeoMacquariecomprisingMacquarieGroupLimitedanditssubsidiarieswhichistheCompanyslargestinvestor.AssuchtheCompanyhasnotcompliedwithRecommendation2.2othePrinciples.NotwithstandingthistheBoardconsidersthatMrMoore-WiltonisthemostappropriatepersontoleadtheBoardandthatheisabletoanddoesbringtotheBoardqualityandindependentjudgmenttoallrelevantissuesallingwithinthescopeotheroleochairmanandthattheCompanyasawholebenetsromhisknowledgeexperienceandleadership.TheBoardCharterrequiresthatalluturechairsmustbeindependent.AssuggestedinthecommentarytothePrinciplesaleadindependentdirectorLeonPasternakwhoisalsoDeputyChairmanhasbeenappointed. SouthernCrossAustereoAnnualReport201323NominationandRemunerationCommitteeTheCompanysNominationandRemunerationCommitteehasaBoard-approvedChartersettingoutitsrolesandresponsibilitiescompositionmembershiprequirementsandoperation.CommitteemeetingminutesaretabledattheollowingBoardmeeting.MrTonyBellanindependentdirectorhasbeenchairotheCommitteesince25October2011.MembersotheNominationandRemunerationCommitteeandtheirattendanceatcommitteemeetingsorthe2013fnancialyeararesetoutintheDirectorsReport.TheNominationandRemunerationCommitteeCharterisavailableontheSouthernCrossAustereowebsite.PerformanceEvaluationTheperormanceoindividualdirectorsandtheBoardandthecommitteesasawholeisreviewedinaccordancewiththeproceduressetoutintheBoardCharter.Suchevaluationstookplaceinearly2013.IndependentProfessionalAdviceThereisanagreedprocedureordirectorsontheBoardandcommitteestoobtainindependentproessionaladviceattheCompanysexpense.TheseproceduresaresetoutintheBoardAuditandRiskCommitteeandNominationandRemunerationCommitteeCharters.MixofSkillsandDiversityTheNominationandRemunerationCommitteeisresponsibleormakingrecommendationstotheBoardonthemostappropriateBoardsizeandcomposition.ThisresponsibilityincludesmakingrecommendationsonthedesirablecompetenciesexperienceandattributesoBoardmembersandstrategiestoaddressBoarddiversity.Principle3PromoteEthicalandResponsibleDecisionMakingCodeofConductTheGroupsCodeoConductsetsoutprinciplesandstandardswhichapplytoalldirectorsemployeesandcertaincontractorsandconsultants.Thecodeincludeswhistlebloweranti-corruptionanddealingwithgovernmentpolicies.TheCodeoConductisunderpinnedbyarangeoadditionalpoliciesincludingsecuritiestradingpolicyOHSpolicycontinuousdisclosureandcommunicationspolicyandprivacypolicy.DiversityTheGroupsDiversityPolicycoverswomenintheworkplaceemployeeswithanethnicorindigenousbackgroundanddisability.ItisapprovedbytheBoardandoverseenbytheNominationandRemunerationCommittee.ThemeasurableobjectivessetbytheBoardorachievinggenderdiversityarepercentageowomeninseniormanagementpositionstobe35by2015percentageowomeninmiddlemanagementpositionstobe40by2015atleastoneemalenon-executiveindependentdirectoratalltimes.With30owomenpresentlyinseniormanagementpositionstheobjectiveoachieving35owomeninsuchpositionsby2015willbechallenging.Thegapbetweentheobjectiveoachieving40owomeninmiddlemanagementpositionsby2015andthecurrent34owomenemployedinthesepositionsissimilarlychallenging.BothobjectivesarebeingworkedtowardsthroughsuccessionplanningleadershipandmanagementdevelopmentprogramsandstrengtheningtheGroupsinternalcapabilities.TheGroupcurrentlymeetsitsobjectiveoatleastoneemalenon-executiveindependentdirector.TheollowingtabledisclosesthegenderdiversityotheGroupCategoryFemaleMaleBoard1486Seniormanagementroles3070Middlemanagementroles3466Employees5248BoththeCodeoConductandDiversityPolicyareavailableontheSouthernCrossAustereowebsite.Principle4SafeguardIntegrityinFinancialReportingAuditandRiskCommitteeTheCompanysAuditandRiskCommitteecomprisesoourindependentdirectorsandcomplieswiththerequirementsothePrinciples.ThechairmanotheBoardcannotchairtheAuditandRiskCommittee.DetailsothemembersotheAuditandRiskCommitteeandtheirattendanceatCommitteemeetingsaresetoutintheDirectorsReport.TheAuditandRiskCommitteeCharterisavailableontheSouthernCrossAustereowebsite.TheChartersetsouttheCommitteesroleresponsibilitiesandcomposition.TheCommitteeisresponsibleoroverseeingthestructureandmanagementsystemsthatensuretheintegrityotheGroupsfnancialreporting.AmongstotherthingstheCommitteereviewsandreportstotheBoardontheCompanysandtheGroupsfnancialreportsandontheexternalauditorsauditothefnancialstatementsrecommendstotheBoardtheappointmentandremovalotheexternalauditorreviewstheauditorstermsoengagementandthescopeandqualityotheauditandmonitorsauditorindependenceincludingthelevelonon-auditservicesprovidedandreportsitsfndingstotheBoard.TheAuditandRiskCommitteemeetswiththeexternalauditorswithoutmanagementorexecutivedirectorspresentatleastonceayearandmorerequentlyirequired.TheauditorattendstheGroupsAnnualGeneralMeetingAGMandisavailabletoanswersecurityholderquestionsontheconductotheauditandthepreparationandcontentotheauditorsreport. SouthernCrossAustereoAnnualReport201324Principle5MakeTimelyandBalancedDisclosureItistheCompanyspolicytoprovidetimelyopenandaccurateinormationtoitsinvestorsregulatorsandthewiderinvestmentcommunity.TheCompanyhasaCommunicationsandDisclosurePolicywhichisavailableontheSouthernCrossAustereowebsite.ThepolicysetsoutthepoliciesaccountabilitiesandproceduresthatgoverntheCompanyshandlingoinormationcontinuousdisclosureandcommunicationstoitsinvestorsandregulators.Theproceduresaddresshowtoidentiyprice-sensitiveinormationwhichincludesreerraltotheCEOandcompanysecretarygeneralcounseloradeterminationastowhetherdisclosureisrequiredandamanagementsign-oprocesstoensurethatASXreleasesareaccurateandcomplete.TheASXliaisonpersonistheSouthernCrossAustereoCompanySecretaryortheCFOintheCompanySecretarysabsence.Principle6RespecttheRightsofShareholdersTheCompanysCommunicationsandDisclosurePolicypromotesahighstandardoeectiveandaccessiblecommunicationwithinvestors.CommunicationwithinvestorsoccursviaASXannouncementstheAnnualReportandhal-yearlyupdateinvestorroadshowsandbriefngs.AllinormationdisclosedtotheASXispostedontheSouthernCrossAustereowebsite.InvestorsareencouragedtoattendtheAGMwhichwillbeheldon22October2013inMelbourne.PresentationsbytheChairmanandCEOattheAGMarewebcast.Forormalmeetingsanexplanatorymemorandumontheresolutionsisincludedwiththenoticeomeeting.Intheeventthatinvestorscannotattendormalmeetingstheyareabletolodgeproxyormsbypostorax.Principle7RecogniseandManageRiskTheBoardisresponsibleoroverseeingtheGroupssystemsointernalcontrolandriskmanagement.TheBoardhasadoptedaRiskManagementPolicywhichisavailableromtheSouthernCrossAustereowebsite.ThepolicyaddressestheoverseeingbytheBoardothemanagementokeybusinessrisksrelevanttotheGroup.TheAuditandRiskCommitteeassiststheBoardinoverseeingtheriskmanagementrameworkandanymattersosignifcanceaectingtheGroupsfnancialreportingandinternalcontrols.Keybusinessriskcategoriesthatareaddressedbythepolicyincludefnancialincludinginvestmentcomplianceliquiditycreditinterestrateriskreputationtechnologyregulatorylegaloperationalpeopleincludingoccupationalhealthandsaetyenvironmentalandsocialresponsibilitiesandstrategicrisks.TheGroupsseniormanagementteamhasresponsibilityortheday-to-dayimplementationotheriskmanagementrameworkandinternalcontrolswithintheGroup.ManagementalsoreportsregularlytotheBoardthroughtheCEOontheGroupskeyrisksandtheextenttowhichitbelievestheserisksarebeingadequatelymanaged.TheGrouphasnotimplementedaninternalauditunction.TheBoardbelievesthatthenatureotheGroupsoperationscurrentlydonotrequirethistobeinstigatedasaseparateunctiontothoseunctionsundertakenbytheexternalauditorsortheAuditandRiskCommittee.AssuranceInaccordancewithsection295AotheCorporationsAct2001theCEOandCFOhavedeclaredinwritingtotheBoardthatintheirviewtheGroupsfnancialreportsareoundedonasoundsystemoriskmanagementandinternalcomplianceandcontrolwhichimplementsthepoliciesadoptedbytheBoardandthattheGroupsriskmanagementandinternalcomplianceandcontrolsystemisoperatingeectivelyinallmaterialrespects.Principle8RemunerateFairlyandResponsiblyNominationandRemunerationCommitteeTheCompanyhasestablishedaNominationandRemunerationCommittee.TheCommitteeisgovernedbyaBoard-approvedCharterwhichisavailableontheSouthernCrossAustereowebsite.MembersotheCommitteealongwithdetailsothenumberomeetingsattendedbythosemembersduringtheyeararesetoutintheDirectorsReport.TheCommitteereviewstheremunerationpackagesandemploymentconditionsapplicabletotheCEOandCFOandanyexecutivedirectors.Inmakingthesedeterminationsregardishadtocomparableindustryorproessionalsalarylevelsandtothespecifcperormanceotheindividualsconcerned.TheCompanyclearlydistinguishesthestructureonon-executivedirectorsremunerationpaidintheormoafxedeeandthatoanyexecutivedirectorandseniorexecutives.TheremunerationomanagersandstaotherthanseniorexecutivesiswithintheauthorityotheCEO.TheCEOhasdiscretioninregardtotheremunerationoindividualmanagerssubjecttotherequirementthattheoverallleveloremunerationiswithinbudgetguidelinesasapprovedbytheBoardpriortopreparationotheannualbudget.FurtherdetailontheGroupsremunerationpracticesandremunerationreceivedbydirectorsandseniorexecutivesandmanagementduringtheyearissetoutintheRemunerationReportwhichcomprisespartotheDirectorsReport.CORPORATEGOVERNANCESTATEMENTFORYEARENDED30JUNE2013 SouthernCrossAustereoAnnualReport201325ThedirectorsoSouthernCrossMediaGroupLimitedtheCompanysubmittheollowingreportorSouthernCrossAustereobeingSouthernCrossMediaGroupLimitedanditssubsidiariestheGrouportheyearended30June2013.InordertocomplywiththeprovisionsotheCorporationsAct2001thedirectorsreportasollowsDirectorsTheollowingpersonsweredirectorsotheCompanyduringthewholeotheyearunlessotherwisestatedanduptothedateothisreportMaxMoore-WiltonChairmanLeonPasternakChrisdeBoerTonyBellMichaelCarapietPeterHarvieMarinaDarlingPrincipalActivitiesTheprincipalactivitiesotheGroupduringthecourseothenancialyearwerethecreationandbroadcastingocontentonreetoaircommercialradioFManddigitalTVandonlinemediaplatormsacrossAustralia.Thesemediaassetsaremonetisedviarevenuegeneratedromthedevelopmentandsaleoadvertisingsolutionsorclients.TherewerenochangesinthenatureotheGroupduringtheyear.ReviewandResultsofOperationsSouthernCrossAustereoreportedtotalrevenueo653.1millionaallo5.0rom687.3millionintheprioryear.EBITDAimprovedinthesecondhalto106.7milliontototal211.0millionortheyeardownrom225.8millionintheprioryear.Depreciationandamortisationchargesweredown4.0milliononprioryearthiscoupledwitha17.7millionreductioninnetnancecostsresultedinanincreaseinprotbeoretaxo5.5to133.3million.A3.1increaseintheeectivetaxrateto27.9hasresultedinnetprotatertaxo96.1millionuponlastyearsresulto95.0millionandslightlyaheadomarketexpectations.InFebruary2013theGroupdivestedoasubsidiarythatheldtwocommercialFMradiobroadcastinglicencesintheSunshineCoastregion.Thissaleresultedinaprotondisposalo10.4million.Aurtherdiscussionotheresultsisoutlinedbelow.EBITDAisameasurethatintheopinionothedirectorsisauseulsupplementtonetprotinunderstandingthecashfowgeneratedromoperationsandavailableorpaymentoincometaxesdebtservicingandcapitalexpenditure.EBITDAisuseultoinvestorsbecauseanalystsandothermembersotheinvestmentcommunitylargelyviewEBITDAasawidelyrecognisedmeasureooperatingperormance.EBITDAdisclosedwithintheDirectorsReportisequivalenttoProtbeoredepreciationamortisationinterestairvaluemovementsonnancialderivativesandincometaxexpenseortheyearincludedwithintheStatementoComprehensiveIncomeandhasbeensubjecttoaudit.SouthernCrossAustereoUptothedateothisreporttheGroupagreednewaliationarrangementswiththeSevenNetworkSEVENandNetworkTenTEN.TheSEVENaliationagreementcoversDarwinCentralAustraliaandTasmania.TENsagreementcoverstheourmainaggregatedmarketsonmainlandAustralia.Securingprogrammingromourtwomajorbroadcastpartnersoratleastthenextthreeyearsprovidessuretyorouradvertisingcustomersasweprogressthrougharapidlychangingmediaenvironment.Twosignicantseniorappointmentshavebeenmadeduringthesecondhalotheyearwhichpositionusortheuture.AndreaInghamwasappointedastheGroupsNationalSalesDirectorandCliveDickenshasbeenengagedasHeadoDigitalStrategyandInnovation.Andreahasalreadyhadapositiveimpactonreningoursalespracticesandprocessesandimportantlybringsstrongrelationshipswithkeyagenciesandbroadcastpartners.ClivehasbeenrecruitedromtheUnitedKingdomwherehehasspentmanyyearsinradioandmorespecicallythelast10plusyearsinthedigitalmediaeconomy.ClivesexperienceandinsightulvisionwilldriveopportunitiesromthealreadyconsiderabledigitalootprinttheGrouppossesses.Aspartoourongoingimprovementinitiativeswehaveengagedourinternalexpertisetotakeareshlookatanumberokeyoperationalareascoveringcontentproductionnewsdeliveryandbroadcast.Severalkeyprojectshaveemergedwhichwillbeocussedondeliveringthenextphaseotheintegratedmulti-mediamodelweoperatewithin.TheprojectsareexpectedtoresultinurtherecienciesbroughtaboutthroughagreaterintegrationoresourcesutilisingdigitaltechnologiesmorecomprehensivelyacrosstheGroup.RegionalFreetoairBroadcastingForthetwelvemonthsended30June2013regionalrevenuesreduced5.6to390.6million.TVrevenuesdroppedby31.7millionyearonyearto214.4millionastheTENproductcontinuedtostrugglewithratings.Regionaltelevisionshareatanationallevelhaserodedmorethanthelocaltelevisionbusiness.Localsalescontinuetotradeonstrongrelationshipsandmaintainingastrongpowerratiomarketshareorevenueovermarketshareoaudienceindicatingwearegettinggoodresultssellingachallengedproductintolocalmarkets.RegionalRadioimprovedmarginallyto176.2millionindicultanduncertainmarketconditions.TheoverallRegionalresulthasbeenimpactedbythesaleotheSunshineCoastwhichwascompletedinFebruary2013resultinginonly8monthsoprotbeingrecordedortheyear.CostcontrolisprovingessentialindicultandchangingmarketsandonceagainthishasbeenaeatureotheRegionalbusinessresult.Expensesreduced8.0to263.0millionresultinginanincreaseinEBITDAmarginyearonyearo1.8to32.7127.6million.DIRECTORSREPORTFORYEARENDED30JUNE2013 SouthernCrossAustereoAnnualReport201326DIRECTORSREPORTFORYEARENDED30JUNE2013MetropolitanFreetoairBroadcastingForthetwelvemonthsended30June2013themetropolitanbusinessrevenuesell4.0to262.5million.ThemetropolitanbusinesshassueredsharelossexacerbatedbytheresidualeectsotheKyleSandilandson-airincidentandtheeectsotheUKincident.SlightlydecliningaudiencesharesonTodayduringtheyearhavealsoaectedtheGroupsabilitytomonetisetheTodaybrandasstronglyashasbeenthecase.TripleMhasimprovedaudienceratingswhichhasassistedinamelioratingtheimpactonoverallrevenues.Revenuelossplusincreasedcompliancecostshavebeenissuesthathaveimpactedtheproftresultsotheyear.Astrongocushasbeenoninvestmentincontentthroughre-signingtalentrestructuringkeyshowsandtheadditiononewshows.CostshavebeenimpactedbyincreasinginvestmentincontentandincreaseddigitalaccesseesortheDabspectrum.Asaresultcostshaverisenmarginallyto179.1milliona2.0increaseovertheprioryear.ConsequentlytheEBITDAmarginhasallento31.883.4millionrom35.8intheprioryear.DistributionsandDividendsTypeCentspershareTotalamount000DateopaymentFinal2011ordinary3.02117320October2011Interim2012ordinary5.03523019April2012Final2012ordinary5.03524319October2012Interim2013ordinary4.53171926April2013Sincetheendothefnancialyearthedirectorshaverecommendedthepaymentoafnalordinarydividendo31.7million4.5centsperullypaidshare.Thisdividendwillbepaidon21October2013bytheCompany.SignifcantChangesinStateoAairsIntheopinionothedirectorstherewerenosignifcantchangesinthestateoaairsotheGroupthatoccurredduringtheyearunderreview.EventsOccurringAterBalanceDateSincetheendothefnancialyeartheGrouphasreachedanagreementwithNetworkTENregardingthesupplyotelevisionprogrammingorthenextthreeyears.NoothermattersorcircumstanceshavearisensincetheendotheyearthathavesignifcantlyaectedormaysignifcantlyaecttheoperationsotheGrouptheresultsotheseoperationsinuturefnancialyearsorthestateoaairsotheGroupinperiodssubsequenttotheyearended30June2013.LikelyDevelopmentsandExpectedResultsoOperationsFurtherinormationonlikelydevelopmentsrelatingtotheoperationsotheGroupinutureyearsandtheexpectedresultsothoseoperationshavenotbeenincludedinthisreportbecausethedirectorsotheCompanybelieveitwouldbelikelytoresultinunreasonableprejudicetothecommercialinterestsotheGroup.IndemnifcationandInsuranceoOfcersandAuditorsDuringtheyeartheCompanypaidapremiumo153467toinsureitsofcers.SolongastheofcersotheCompanyactinaccordancewiththeConstitutionandthelawtheofcersremainindemnifedoutotheassetsotheCompanyandtheGroupagainstanylossesincurredwhileactingonbehalotheCompanyandtheGroup.TheauditorsotheGroupareinnowayindemnifedoutotheassetsotheGroup.EnvironmentalRegulationTheoperationsotheGrouparenotsubjecttoanysignifcantenvironmentalregulationsunderAustralianCommonwealthStateorTerritorylaw.Thedirectorsarenotawareoanybreachesoanyenvironmentalregulations.InormationonDirectorsMaxMoore-WiltonChairmanAge70Appointed27February2007MaxMoore-WiltonisthechairmanotheBoardandacommitteememberotheNominationandRemunerationCommittee.PriortohisappointmentMaxhashadadistinguishedcareerinboththeprivateandpublicsectorsandwassecretarytotheDepartmentoPrimeMinisterandCabinetromMay1996toDecember2002whereheoversawundamentalreormotheCommonwealthPublicService.OtherCurrentDirectorshipsMaxcurrentlyservesaschairmanoftheBoardsofthefollowinglistedcompaniesSydneyAirportHoldingsLimitedSouthernCrossAirportsCorporationHoldingsLimitedFormerDirectorshipsinthelast3yearsMaxhasnotceasedanylistedcompanydirectorshipsinthelast3years. SouthernCrossAustereoAnnualReport201327LeonPasternakIndependentDirectorAge58Appointed26September2005LeonPasternakisthedeputychairmanotheBoardandisacommitteememberotheNominationandRemunerationandAuditandRiskCommittees.UntilJuly2010LeonwasaseniorcorporatepartneratFreehillsnowHerbertSmithFreehillsspecialisinginmergersandacquisitionspublicfnanceandcorporatereorganisations.LeoniscurrentlyvicechairmanandmanagingdirectorwithMerrillLynchMarketsAustraliaPtyLimitedasubsidiaryoBankoAmericawithresponsibilityorthefnancialinstitutionsgroupandmergersandacquisitions.OtherCurrentDirectorshipsLeonhasnoothercurrentdirectorshipsinlistedcompanies.FormerDirectorshipsinthelast3yearsLeonhasnotceasedanylistedcompanydirectorshipsinthelast3years.ChrisdeBoerIndependentDirectorAge68Appointed20September2005ChrisdeBoerischairmanotheAuditandRiskCommitteeandacommitteememberotheNominationandRemunerationCommittee.ChrishashadvariouscareersininvestmentbankingbusinessconsultingstockbrokinganddirectinvestmentandthroughthemgainedexperienceininitialpublicoeringsmergersandacquisitionscorporatereorganisationsjointventuresbondissuesandfnancialadviceacrossLondonHongKongAustraliaandNewZealandinbothdomesticandcross-borderdeals.Chrisalsohasextensiveexperienceintakeoverregulation.ChrisspentmorethantwoyearsasanexecutiveattheTakeoverPanelinLondonthreeyearsontheTakeoversCommitteeinHongKongandouryearsaschairmanotheTakeoversPanelinHongKong.OtherCurrentDirectorshipsChrishasnoothercurrentdirectorshipsinlistedcompanies.FormerDirectorshipsinthelast3yearsChrishasnotceasedanylistedcompanydirectorshipsinthelast3years.TonyBellIndependentDirectorAge59Appointed2April2008TonyBellischairmanothecompanysNominationandRemunerationCommitteeandacommitteememberotheAuditandRiskCommittee.TonyisoneoAustraliasmostdistinguishedmediaoperatorswithover30yearsexperienceintheAustralianradioandreetoairtelevisionindustry.AsManagingDirectoroSouthernCrossBroadcastingAustraliaLimitedrom1993to2007TonygainedextensiveexperienceinregionalandmetropolitanmediaandwasinstrumentalinitsormationasoneoAustraliasleadingmediacompanies.OtherCurrentDirectorshipsTonyhasnoothercurrentdirectorshipsinlistedcompanies.FormerDirectorshipsinthelast3yearsTonyhasnotceasedanylistedcompanydirectorshipsinthelast3years. SouthernCrossAustereoAnnualReport201328MichaelCarapietNon-executiveDirectorAge54Appointed10March2010.PreviouslyappointedAlternateDirectoron11April2008andresignedon10March2010.MichaelCarapiethasmorethan30yearsexperienceinthefnancialsector.HeretiredromMacquarieGroupin2011whereheheldanumberoseniorrolesincludingthatoanExecutiveCommitteemember.MichaelisthechairpersonoSASTrusteeCorporationNSWStateSuperadirectoroStateSuperFinancialServicesAustraliaLtdandthechairpersonoSaetyReturntoWorkandSupportBoardthatcomprisestheWorkCoverAuthorityoNSWLietimeCareandSupportandMotorAccidentsAuthority.HeisalsoadirectoroCleanEnergyFinanceCorporationandisontheAdvisoryBoardsoNortonRoseAustraliaandTransfeldHoldings.OtherCurrentDirectorshipsMichaelhasnoothercurrentdirectorshipsinlistedcompanies.FormerDirectorshipsinthelast3yearsMichaelhasnotceasedanylistedcompanydirectorshipsinthelast3years.PeterHarvieNon-executiveDirectorAge74Appointed1August2011PeterHarvieisacommitteememberothecompanysNominationandRemunerationCommittee.Peterhasmorethan45yearsexperienceintheadvertisingmarketingandmediaindustries.PriortohisappointmentPeterwastheexecutivechairmanoAustereoGroupLimitedrom1997untilMay2011managingdirectorotheTripleMNetworkandounderandmanagingdirectorotheClemengerHarvieadvertisingagencyrom1974to1993.OtherCurrentDirectorshipsPeterhasbeenadirectoroVillageRoadshowLimitedsince20June2000.FormerDirectorshipsinthelast3yearsPeterceasedbeingadirectoroAustereoGroupLimitedon18July2011.MarinaDarlingIndependentDirectorAge54Appointed12September2011MarinaDarlingisacommitteememberothecompanysAuditandRiskCommittee.Marinaisanexperiencedcompanydirectorandhasworkedinanexecutivecapacityinthelegalandcorporatefnancesectorsandpropertydevelopment.Marinaiscurrentlyanon-executivedirectoroTheMirvacGroupandhaspreviouslybeenanon-executivedirectoroabroadrangeolistedcompaniesgovernmentbodiesandotherorganisations.ThesehaveincludedArgoInvestmentsLimitedSouthernCrossBroadcastingLimitedNationalAustraliaTrusteesLimitedGIOHoldingsLimitedDeaconsLawyersandSouthernHydroLimited.OtherCurrentDirectorshipsMarinawasappointedadirectoroTheMirvacGroupthroughthestaplingosecuritiesoMirvacLimitedandMirvacPropertyTruston23January2012.FormerDirectorshipsinthelast3yearsMarinaceasedbeingadirectoroArgoInvestmentsLimitedon29February2012.InformationonCompanySecretaryLouiseBolgerBALLBHonsAppointed14April2010LouiseBolgerisaqualifedsolicitorwithmorethan10yearsexperiencecommencinghercareerinprivatepracticebeorecontinuingontoin-houseroleswithTelstraLogicaBankoQueenslandandmostrecentlyPIPENetworksLimitedpriortoitsacquisitionbyTPGTelecomLimitedwhereshewasbothgeneralcounselandcompanysecretary.MeetingsofDirectorsThenumberomeetingsotheBoardoDirectorsandoothercommitteemeetingsheldduringtheyearended30June2013andthenumbersomeetingsattendedbyeachdirectorwereMeetingsofcommitteesFullmeetingsofdirectorsAuditandRiskNominationandRemunerationIndependentBoardABABABABDirectorMaxMoore-WiltonChairman141422LeonPasternak1214661222ChrisdeBoer1414661222TonyBell1414662222MichaelCarapiet1414PeterHarvie141422MarinaDarling14146622ANumberomeetingsattendedBNumberomeetingsheldduringthetimethedirectorheldofceorwasamemberothecommitteeduringtheyearNotamemberotherelevantcommitteeDIRECTORSREPORTFORYEARENDED30JUNE2013 SouthernCrossAustereoAnnualReport201329RemunerationReportContents1.Introduction2.Principlesusedtodeterminethenatureandamountoremuneration3.Detailsoremuneration4.Serviceagreements5.Otherremunerationinormation1.IntroductionTheinormationprovidedinthisRemunerationReporthasbeenauditedasrequiredbysection3083CotheCorporationsAct2001.2.PrinciplesusedtodeterminethenatureandamountofremunerationTheobjectiveotheGroupsexecutiverewardrameworkistoensurerewardorperormanceiscompetitiveandappropriateortheresultsdelivered.Therameworkalignsexecutiverewardwithachievementostrategicobjectivesandthecreationovalueorshareholdersandconormswithmarketpracticeordeliveryoreward.TheBoardensuresthatexecutiverewardsatisestheollowingkeycriteriaorgoodrewardgovernancepracticescompetitivenessandreasonablenessacceptabilitytoshareholdersperormancelinkagealignmentoexecutivecompensationtransparencyandcapitalmanagement.InconsultationwithexternalremunerationconsultantstheGrouphasstructuredanexecutiveremunerationrameworkthatismarketcompetitiveandcomplementarytotherewardstrategyotheorganisation.Alignmenttoshareholdersinterestshaseconomicprotasacorecomponentoplandesignocusesonsustainedgrowthinshareholderwealthconsistingodividendsandgrowthinsharepriceanddeliveringconstantreturnonassetsaswellasocusingtheexecutiveonkeynon-nancialdriversovalueandattractsandretainshighcalibreexecutives.Alignmenttoprogramparticipantsinterestsrewardscapabilityandexperiencerefectscompetitiverewardorcontributiontogrowthinshareholderwealthprovidesaclearstructureorearningrewardsandprovidesrecognitionorcontribution.Therameworkprovidesamixoxedandvariablepayandablendoshortandlong-termincentives.AsexecutivesgainsenioritywiththeGroupthebalanceothismixshitstoahigherproportionoatriskrewards.TheBoardhasestablishedaNominationandRemunerationCommitteewhichmakesrecommendationstotheBoardonremunerationandincentivepoliciesandpracticesandspecicrecommendationsonremunerationpackagesandothertermsoemploymentorexecutivedirectorsotherseniorexecutivesandnon-executivedirectors.2.1.Non-executiveandindependentdirectorsfeesFeesandpaymentstonon-executiveandindependentdirectorsrefectthedemandswhicharemadeonandtheresponsibilitiesothedirectors.Non-executiveandindependentdirectorseesandpaymentsarereviewedannuallybytheBoard.TheBoardhasalsoconsideredtheadviceoindependentremunerationconsultantstoensurenon-executivedirectorseesandpaymentsareappropriateandinlinewiththemarket.Thechairseesaredeterminedindependentlytotheeesonon-executiveandindependentdirectorsbasedoncomparativerolesinthemarket.Thechairisnotpresentatanydiscussionsrelatingtodeterminationohisownremuneration.Non-executiveandindependentdirectorsdonotreceiveperormance-basedpayandarenotentitledtoCompanysharesperormancerightsortoretirementbenetsaspartotheirremunerationpackage.Thedirectorseeswerereviewedwitheectrom1July2012.Thechairsremunerationisinclusiveocommitteeeeswhileothernon-executiveandindependentdirectorswhochairorareamemberoacommitteereceiveadditionalyearlyees.Theollowingnon-executivedirectorseeshaveappliedintheyearsended30June2013and30June2012ortheCompanyFrom1July2012to30June2013From1July2011to30June2012BasefeesannualChair250000250000Deputychair161500161500Othernon-executivedirectors125000125000AdditionalfeesannualAuditCommitteechair2100021000AuditCommitteemember1400014000RemunerationCommitteechair1500015000RemunerationCommitteemember1000010000Chairanddeputychaireesareinclusiveoallrelevantcommitteeeesandassuchtheydonotreceiveanyadditionalcommitteeees. SouthernCrossAustereoAnnualReport2013302.Principlesusedtodeterminethenatureandamountofremunerationcontinued2.2.ExecutivepayTheexecutivepayandrewardrameworkcurrentlyhastheollowingcomponentsbasepayandbenetsincludingsuperannuationandshort-termandlong-termperormanceincentives.BasepayandbeneftsBasepayisstructuredasatotalemploymentpackagewhichmaybedeliveredasacombinationocashandprescribednon-nancialbenetsattheexecutivesdiscretion.Basepayorexecutivesisreviewedannuallytoensuretheexecutivespayiscompetitivewiththemarket.Aspartothisreviewprocessexternalremunerationconsultantsareengagedromtimetotimetoprovideanalysisandadvicetoensurebasepayissettorefectthemarketoracomparablerole.Anexecutivespayisalsoreviewedonpromotion.SuperannuationTheGroupoperatesadenedcontributionretirementscheme.Perormancelinkedremunerationcurrentlycomprisesshort-termandlong-termincentives.Short-termincentivesTheshort-termincentiveSTIisanatriskbonusprovidedintheormocashandisdesignedtorewardseniorexecutivesormeetingorexceedingmainlynancialobjectives.EachyeartheNominationandRemunerationCommitteesetstheKeyPerormanceIndicatorsKPIsortheCEOandCFOwhicharedesignedtodirectlyaligntheindividualsrewardtotheKPIsotheGroupandtoitsstrategyandperormance.ThenancialKPIsarebasedonearningsbeoreinteresttaxdepreciationandamortisationEBITDAcomparedwithbudgetedamounts.AttheendothenancialyeartheNominationandRemunerationCommitteeassessestheactualperormanceotheGroupandtheindividualagainsttheKPIsandrecommendsthequantumotheshort-termcashincentivebonustobepaidtotheindividualsorapprovalbytheBoard.TheseassessmentmethodshavebeenchosenastheyprovidetheCommitteewithanobjectiveassessmentoeachindividualsperormance.Long-termincentivesThelong-termincentiveLTIisanatriskbonusprovidedintheormosharesandisdesignedtorewardseniorexecutivesormeetingorexceedingTotalShareholderReturnTSRperormanceoverathreetoouryearperiod.InJune2010theBoardapprovedtheintroductionoanexecutivelong-termincentiveplantocommenceon1July2010whichprovidedortheCEOandseniorexecutivestoreceivegrantsoperormancerightsoverordinarysharesornilconsideration.Thegrantorightsareexercisablesubjecttoathreeorouryearperormanceperiodandthesatisactionosetperormancecriteriaduringtheperiod.TheperormancecriteriatakeintoaccountsharepriceappreciationplusreinvesteddividendsexpressedasapercentageoinvestmentandadjustedorchangesintheCompanyscapitalstructure.InorderorperormancerightstovestandconverttosharestheCompanysTSRovertheperormanceperiodmustbeatorabovethe51stpercentileagainstacomparativegrouposelectedmediaandrelatedlistedcompanies.Betweenthe51stand75thpercentileperormancerightswillvestonalinearbasisrom50oawardto100oawardconsequently100operormancerightswillvestatthe75thpercentileorhigher.Forthethreeyearperormanceperiodperormancerightsvestprogressivelyoverthethreeyearperormanceperiodwith13rdvestingatyear113rdatyear2and13rdatyear3subjecttoperormancecriteriabeingmet.Fortheouryearperormanceperiodperormancerightsvestprogressivelyovertheouryearperormanceperiodwith13rdvestingatyear213rdatyear3and13rdatyear4ortheouryearperormanceperiodsubjecttoperormancecriteriabeingmet.TheBoardhasthediscretiontoeitherpurchasesharesonmarketortoissuenewsharesinrespectovestingperormancerights.TodatetheBoardhaselectedtoissuenewsharesorvestingperormancerights.DIRECTORSREPORTFORYEARENDED30JUNE2013 SouthernCrossAustereoAnnualReport201331RemunerationandCompanyPerformanceAkeyobjectiveotheExecutiveRemunerationPolicyistolinkanincreasedproportionoexecutiveremunerationtotheperormanceotheCompanywithanemphasisonthecreationosustainablevalueorshareholders.Financialperormanceromcontinuingoperationsorthepastfveyearsisindicatedbytheollowingtable30June201330June2012Restated30June201130June201030June2009000000000000000Revenue653114687313492811406909393483Netproftbeoretax133269126282872322418515724Netproftatertax961119502264060199031864030June201330June2012Restated30June201130June201030June2009000000000000000Openingshareprice1.201.551.641.322.95Closingshareprice1.431.201.551.641.32Dividenddistribution9.0c10.0c10.0c9.7c7.7cRestatementorfnalisationoallocationopurchasepriceorAustereoacquisitioninaccordancewithAccountingStandards.3.DetailsofremunerationDetailsotheremunerationoKeyManagementPersonnelotheGrouparesetoutintheollowingtables.KeyManagementPersonnelDirectorsMaxMoore-WiltonChairmanLeonPasternakChrisdeBoerTonyBellMichaelCarapietPeterHarvieMarinaDarlingExecutivesRhysHolleranCEOStephenKellyCFOGuyDobsonChieContentOfcerCraigBruceHeadoContentCathyThomasNationalSalesDirectorceased1February2013AndreaInghamNationalSalesDirectorappointed1February2013 SouthernCrossAustereoAnnualReport2013323.DetailsoremunerationcontinuedKeyManagementPersonnelremuneration2013Short-termemployeebeneftsPost-employ-mentbeneftsShare-basedpaymentsProportionoperormancerelatedremunerationNameCashsalaryandeesCashbonusNon-monetarybeneftsSupercon-tributionOtherlong-termbenefts3Terminat-ionPer-ormancerightsTotalSTISBPoremoremNon-executivedirectorsMaxMoore-WiltonChair240400960025000000LeonPasternak1493641213616150000ChrisdeBoer1442801172015600000TonyBell15400015400000MichaelCarapiet12500012500000PeterHarvie13500013500000MarinaDarling1275241147613900000Sub-totalnon-executivedirectors1075568449321120500ExecutivesRhysHolleran768750205500216912500031863432080116603761219StephenKelly5822501370005204240007504619998010234801320GuyDobson82412532392164701245245416180262407CraigBruce508530600005144164701274111100702518916CathyThomas1247059597211411520225924000AndreaIngham21389718000560182351037336108207288417Sub-totalexecutive3069685410500760041015862756017221504655526Total41452534105007600414651827560172215057760261Remunerationdisclosedisfortheperiod1July2012to1February2013whenCathyThomaswasNationalSalesDirector.MrsThomastookthepositionofGeneralManagerMelbourneon1February2013andceasedbeingKeyManagementPersonnel.2Remunerationdisclosedisfortheperiod1February2013to30June2013afterAndreaInghamwasappointedNationalSalesDirector.3Amountsrepresentmovementsinemployeeleaveentitlementswithanegativebalancerepresentinganoverallreductionintheemployeeleaveprovisionbalancecomparedwithprioryear.DIRECTORSREPORTFORYEARENDED30JUNE2013 SouthernCrossAustereoAnnualReport2013332012Short-termemployeebeneftsPost-employ-mentbeneftsShare-basedpaymentsProportionoperormancerelatedremunerationNameCashsalaryandeesCashbonusNon-monetarybeneftsSupercon-tributionOtherlong-termbenefts4Terminat-ionPer-ormancerightsTotalSTISBPoremoremNon-executivedirectorsMaxMoore-WiltonChair2325441745625000000LeonPasternak1469651453516150000ChrisdeBoer1419601404015600000TonyBell14900014900000MichaelCarapiet12500012500000PeterHarvie1688626349143944776538148425800MarinaDarling10945810945800Sub-totalnon-executivedirectors973789634914499757765382435216ExecutivesRhysHolleran70000022965055786250003881725275213020051819StephenKelly5000031531003906500023511777608851221720JeremySimpson2194698550008455143607338481433279941715GuyDobson984225317791577549317108109600CraigBruce521724450002849157754153176381703260611CathyThomas3141408257039442025916818100Sub-totalexecutive30420584827501053451248561576135550364467658Total401584748275074025917483115761377653855503669028741PeterHarviewasappointedasanon-executivedirectoron1August2011thereoreremunerationdisclosedrelatestohispositionasexecutivechairmanoAustereopriortothisdate.NodirectorseeswerepaidtoMrHarvieduringtheperiod.2Remunerationdisclosedisortheperiod1July2011to23February2012whenJeremySimpsonwasNationalSalesDirector.MrSimpsontookthepositionoGeneralManagerSydneyon23February2012andceasedbeingKeyManagementPersonnel.3Remunerationdisclosedisortheperiod23February2012to30June2012aterCathyThomaswasappointedNationalSalesDirector.4Amountsrepresentmovementsinemployeeleaveentitlementswithanegativebalancerepresentinganoverallreductionintheemployeeleaveprovisionbalancecomparedwithprioryear.4.ServiceagreementsOnappointmenttotheBoardallnon-executivedirectorsenterintoaserviceagreementwiththeGroupintheormoaletteroappointment.ThelettersummarisestheBoardpoliciesandtermsincludingcompensationrelevanttotheofceodirector.Remunerationandothertermsoemploymentorthechieexecutiveofcerandtheotherexecutivesarealsoormalisedinserviceagreements.Eachotheseagreementsprovideortheprovisionobaseremunerationperormance-relatedcashbonusesandothernon-monetarybeneftswiththekeytermsoutlinedbelow.Name1TypeoagreementBasesalaryincludingsuperannuation000STIontargetLTIvalueTerminationnoticeperiodRhysHolleranPermanent100040035012mthseitherpartyStephenKellyPermanent77530020012mthseitherpartyGuyDobsonPermanent6501001006mthseitherpartyCraigBrucePermanent5406012512mthseitherpartyAndreaInghamPermanent3501001003mthseitherparty1ServicecontractsoronlythoseKeyManagementPersonnelwhohaveremainedKeyManagementPersonneltothedateothisreporthavebeendetailedinthistable. SouthernCrossAustereoAnnualReport2013345.OtherremunerationinformationLoanstodirectorsandexecutivesTherewerenoloanstodirectorsandexecutives.PerformancerightsgrantedtodirectorsandexecutivesDuringtheyeartheollowingshare-basedpaymentarrangementswereinexistence2012PerformancerightsseriesGrantdateExpirydateFairvalueatgrantdateVestingdatePercentilerankingvested2012Tranche125102012na0.4001072013nana2012Tranche225102012na0.4901072014nana2012Tranche325102012na0.5301072015nana2012Tranche425102012na0.5401072016nanaOn1July20132012Tranche1perormancerightswereassessedanddeterminedtobeatthe40thpercentilewith0osharesvesting.2011PerformancerightsseriesGrantdateExpirydateFairvalueatgrantdateVestingdatePercentilerankingvested2011Tranche125102011na0.510107201249thpercentile02011Tranche225102011na0.6201072013nana2011Tranche325102011na0.6701072014nana2011Tranche425102011na0.6801072015nanaOn1July20132011Tranche2perormancerightswereassessedanddeterminedtobeatthe47.8thpercentilewith0osharesvesting.2010PerformancerightsseriesGrantdateExpirydateFairvalueatgrantdateVestingdatePercentilerankingvested2010Tranche126072010na0.860107201160thpercentile70.02010Tranche226072010na0.880107201263.1stpercentile76.22010Tranche326072010na0.9001072013nana2010Tranche426072010na0.9001072014nanaOn1July20132010Tranche3perormancerightswereassessedanddeterminedtobeatthe63.1stpercentilewith76.2osharesvesting.Share-basedpaymentcompensationgrantedtoKeyManagementPersonnelorthecurrentfnancialyearwereasollowsPerformancerightsseriesgrantedNo.grantedNo.vestedNo.forfeitedDirectorsMaxMooreWiltonLeonPasternakChrisdeBoerTonyBellMichaelCarapietPeterHarvieMarinaDarlingExecutivesRhysHolleran2012Tranche2to4incl.350000674203RhysHolleran2010Tranche210101331550StephenKelly2012Tranche1to3incl.200000428464StephenKelly2011Tranche1130706StephenKelly2010Tranche25772218029GuyDobson2012Tranche2to4incl.150000288944CraigBruce2012Tranche1to3incl.125000267790CraigBruce2011Tranche181691CathyThomasAndreaIngham2012Tranche2to4incl.100000192629DIRECTORSREPORTFORYEARENDED30JUNE2013 SouthernCrossAustereoAnnualReport201335DirectorsholdingsofsharesTheaggregatenumberoCompanyshareshelddirectlyindirectlyorbenefciallybydirectorsotheCompanyortheirdirectorrelatedentitiesatthedateothisfnancialreportare20132012MaxMoore-Wilton10000001857143LeonPasternak10642161064216ChrisdeBoer148571148571TonyBell172767160118MichaelCarapiet13479001347900PeterHarvieMarinaDarling100000MacquarieGroupLimitedandcontrolledentities179513906179513906183347360184091854Non-AuditServicesTheGroupmaydecidetoemploytheauditoronassignmentsadditionaltotheirstatutoryauditdutieswheretheauditorsexpertiseandexperiencewiththeCompanyandortheGroupareimportant.DetailsotheamountspaidorpayabletotheauditorsPricewaterhouseCoopersorauditandnon-auditservicesprovidedduringtheyeararedetailedinnote3tothefnancialstatements.TheBoardoDirectorshasconsideredthepositionandinaccordancewiththeadvicereceivedromtheAuditandRiskCommitteeissatisfedthattheprovisionothenon-auditservicesiscompatiblewiththegeneralstandardoindependenceorauditorsimposedbytheCorporationsAct2001.Thedirectorsaresatisfedthattheprovisiononon-auditservicesbytheauditordidnotcompromisetheauditorindependencerequirementsotheCorporationsAct2001ortheollowingreasonsallnon-auditserviceshavebeenreviewedbytheAuditandRiskCommitteetoensuretheydonotimpacttheimpartialityandobjectivityotheauditorandnoneotheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110CodeoEthicsorProessionalAccountantsincludingreviewingorauditingtheauditorsownworkactinginamanagementoradecision-makingcapacityortheCompanyactingasadvocateortheCompanyorjointlysharingeconomicriskandrewards.RoundingofAmountsintheDirectorsReportandtheFinancialReportTheGroupandtheCompanyareoakindreerredtoinClassOrder98100issuedbytheAustralianSecuritiesandInvestmentsCommissionrelatingtotheroundingooamountsintheDirectorsReportandFinancialReport.AmountsintheDirectorsReportandtheFinancialReporthavebeenroundedoinaccordancewiththatClassOrdertothenearestthousanddollarsunlessotherwiseindicated.AuditorsIndependenceDeclarationAcopyotheAuditorsIndependenceDeclarationasrequiredunders307CotheCorporationsAct2001issetoutonpage36.ThisreportissignedinaccordancewithresolutionsotheDirectorsoSouthernCrossMediaGroupLimited.MaxMoore-WiltonLeonPasternakChairmanDeputyChairmanSouthernCrossMediaGroupLimitedSouthernCrossMediaGroupLimitedSydneyAustraliaSydneyAustralia13August201313August2013 SouthernCrossAustereoAnnualReport201336AUDITORSINDEPENDENCEDECLARATIONFORYEARENDED30JUNE2013PricewaterhouseCoopersABN52780433757FreshwaterPlace2SouthbankBoulevardSOUTHBANKVIC3006GPOBox1331MELBOURNEVIC3001DX77MelbourneAustraliaT61386031000F61286031999www.pwc.com.auLiabilitylimitedbyaschemeapprovedunderProfessionalStandardsLegislation.AuditorsIndependenceDeclarationAsleadauditorfortheauditofSouthernCrossMediaGroupLimitedfortheyearended30June2013IdeclarethattothebestofmyknowledgeandbelieftherehavebeenanocontraventionsoftheauditorindependencerequirementsoftheCorporationsAct2001inrelationtotheauditandbnocontraventionsofanyapplicablecodeofprofessionalconductinrelationtotheaudit.ThisdeclarationisinrespectofSouthernCrossMediaGroupLimitedandtheentitiesitcontrolledduringtheperiod.ChrisDoddPartnerPricewaterhouseCoopersMelbourne13August2013 SouthernCrossAustereoAnnualReport201337STATEMENTOFCOMPREHENSIVEINCOMEFORYEARENDED30JUNE2013ConsolidatedNote20130002012000Revenueromcontinuingoperations2642631687313Otherincome210483Broadcastandproductioncosts104311115361Employeeexpenses2174505175458Sellingcosts6768370699Occupancycosts22931031827Promotionsandmarketing1367912529Administrationcosts5196754994Shareonetlossesprotsoinvestmentsaccountedorusingtheequitymethod9668665Proftbeoredepreciationamortisationinterestairvaluemovementsonfnancialderivativesandincometaxexpensesortheyearromcontinuingoperations210991225780Depreciationandamortisationexpense22647630523Interestexpenseandotherborrowingcosts25497771699Interestrevenue237312724Proftbeoreincometaxexpenseortheyearromcontinuingoperations133269126282Incometaxexpenseromcontinuingoperations43715831260Proftromcontinuingoperationsaterincometaxexpenseortheyear9611195022OthercomprehensiveincomelossthatmaybereclassiedtoprotorlossChangestoairvalueocashfowhedgesnetotax226413529Totalcomprehensiveproftortheyearattributabletoshareholders9837581493EarningspershareattributabletotheordinaryequityholdersoftheCompanyBasicearningspersharecents2313.6413.48Dilutedearningspersharecents2313.5913.45TheaboveStatementoComprehensiveIncomeshouldbereadinconjunctionwiththeaccompanyingnotes. SouthernCrossAustereoAnnualReport201338ConsolidatedNote20130002012000CurrentassetsCashandcashequivalents610290697175Receivables7129638132623Totalcurrentassets232544229798Non-currentassetsReceivables862215796Investmentsaccountedorusingtheequitymethod91367710581Propertyplantandequipment11170595172517Intangibleassets1220308822036890Otherfnancialassets10110141Deerredtaxassets13900319143Totalnon-currentassets22304882245068Totalassets24630322474866CurrentliabilitiesPayables15105895118244Provisions161981721657Borrowings171919416228Currenttaxliabilities4622356942Derivativefnancialinstruments184207Totalcurrentliabilities195336213071Non-currentliabilitiesProvisions191052212388Borrowings17676175690788Derivativefnancialinstruments181486324249Totalnon-currentliabilities701560727425Totalliabilities896896940496Netassets15661361534370EquityContributedequity2016868781686878Reserves21894112336Otherequitytransaction217740677406Accumulatedlosses223469363064Equityattributabletoequityholders15658381534072Non-controllinginterest298298Totalequity15661361534370TheaboveStatementoFinancialPositionshouldbereadinconjunctionwiththeaccompanyingnotes.STATEMENTOFFINANCIALPOSITIONFORYEARENDED30JUNE2013 SouthernCrossAustereoAnnualReport201339STATEMENTOFCHANGESINEQUITYFORYEARENDED30JUNE2013Consolidated2013Contributedequity000Reserves000Otherequitytransaction000Accumulatedlosses000Total000Non-controllinginterest000Totalequity000Restatedtotalequityat1July2012168687812336774066384215332942981533592Proftortheyear961119611196111Othercomprehensiveincome226422642264Totalcomprehensiveincome2264961119837598375TransactionswithequityholdersintheircapacityasequityholdersEmployeeshareentitlements113111311131Dividendsprovidedororpaid6696266962669621131669626583165831Totalequityat30June201316868788941774063469315658382981566136TheaboveStatementoChangesinEquityshouldbereadinconjunctionwiththeaccompanyingnotes.Consolidated2012Contributedequity000Reserves000Otherequitytransaction000Accumulatedlosses000Total000Non-controllinginterest000Totalequity000Restatedtotalequityat1July201116881494047740610168315094642981509762Proftortheyear950229502295022Othercomprehensiveincome135291352913529Totalcomprehensiveincome13529950228149381493TransactionswithequityholdersintheircapacityasequityholdersEmployeeshareentitlements789789789Buybackocompanyshares127112711271Dividendsprovidedororpaid5640356403564031271789564035688556885Totalequityat30June2012168687812336774066306415340722981534370TheaboveStatementoChangesinEquityshouldbereadinconjunctionwiththeaccompanyingnotes. SouthernCrossAustereoAnnualReport201340ConsolidatedNote20130002012000CashfowsromoperatingactivitiesReceiptsromcustomers705402767671Paymentstosuppliersemployees517144538151Governmentgrantsreceived311Interestreceivedromexternalparties37292724Taxpaid3874623216Netcashinfowsromoperatingactivities24153241209339CashfowsrominvestingactivitiesPaymentsorpurchaseopropertyplantandequipment2506521243Paymentsorpurchaseointangibles141405Dividendsreceivedrominvestments92Proceedsromsaleopropertyplantandequipment1878Proceedsromsaleosubsidiary2a17651Paymentsorpurchaseoinvestments1165Netcashfowsusedininvestingactivities684221556CashfowsromnancingactivitiesDividendspaidtosecurityholders6696256403Repaymentoborrowingsromexternalparties160006000Paymentsorbuybackocompanyshares1271Interestpaidtoexternalparties5697758492Movementinfnanceleaseliabilities72986Netcashfowsusedinnancingactivities140668122252Netincreaseincashandcashequivalents573165531Cashassetsatthebeginningotheyear9717531644Cashassetsattheendotheyear610290697175TheaboveStatementoCashFlowsshouldbereadinconjunctionwiththeaccompanyingnotes.STATEMENTOFCASHFLOWSFORYEARENDED30JUNE2013 SouthernCrossAustereoAnnualReport201341NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE20131.SummaryoSignifcantAccountingPoliciesTheprincipalaccountingpoliciesadoptedinthepreparationotheseconsolidatednancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresentedunlessotherwisestated.ThenancialstatementsareortheconsolidatedentityconsistingoSouthernCrossMediaGroupLimitedtheCompanyanditssubsidiariestheGroup.aBasisofpreparationThisgeneralpurposenancialreporthasbeenpreparedinaccordancewithAustralianAccountingStandardsandtheCorporationsAct2001whereapplicable.InormationinrespectotheparententityinthisnancialreportrelatestoSouthernCrossMediaGroupLimited.iCompliancewithIFRSCompliancewithAustralianAccountingStandardsensuresthatthenancialstatementsandnotesotheGroupcomplywithInternationalFinancialReportingStandardsIFRSasissuedbytheInternationalAccountingStandardsBoardIASB.ConsequentlythisnancialreporthasalsobeenpreparedinaccordancewithandcomplieswithIFRSasissuedbytheIASB.iiHistoricalcostconventionThesenancialstatementshavebeenpreparedunderthehistoricalcostconventionasmodiedbytherevaluationocertainnancialassetsandliabilitiesincludingderivativeinstrumentsatairvaluethroughprotorloss.AllamountsarepresentedinAustraliandollarsunlessotherwisenoted.iiiComparativefguresWherenecessarycomparativegureshavebeenadjustedtoconormtochangesinpresentationinthecurrentyear.bPrinciplesofconsolidationTheconsolidatednancialstatementsincorporatetheassetsandliabilitiesoallsubsidiariesotheCompanyasat30June2013andtheresultsoallsubsidiariesortheyearthenended.TheeectsoalltransactionsbetweenentitiesintheGroupareeliminatedinull.ThepurchasemethodoaccountingisusedtoaccountortheacquisitionosubsidiariesbytheGroupexceptasollowsAtthetimeoInitialPublicOeringIPOSouthernCrossMediaAustraliaHoldingsPtyLimitedSCMAHLwasdeemedtobetheaccountingacquirerobothSouthernCrossMediaGroupLimitedSCMGLandSouthernCrossMediaTrustSCMTwhichwasneitherthelegalparentnorlegalacquirerandThisrefectstherequirementsoAASB3thatinsituationswhereanexistingentitySCMAHLarrangestobeacquiredbyasmallerentitySCMGLorthepurposesoastockexchangelistingtheexistingentitySCMAHLshouldbedeemedtobetheacquirersubjecttoconsiderationootheractorssuchasmanagementotheentitiesinvolvedinthetransactionandrelativeairvaluesotheentitiesinvolvedinthetransaction.Thisiscommonlyreerredtoasareverseacquisition.AtthetimeoIPOinNovember2005thereverseacquisitionguidanceoAASB3wasappliedtotheGroupandthecostotheBusinessCombinationwasdeemedtobepaidbySCMAHLtoacquireSCMGLandSCMT.ThecostwasdeterminedbyreerencetotheairvalueothenetassetsoSCMGLandSCMTimmediatelypriortotheBusinessCombination.TheinvestmentmadebythelegalparentSCMGLinSCMAHLtolegallyacquiretheexistingradioassetsiseliminatedonconsolidation.InapplyingtheguidanceoAASB3thiseliminationresultsinadebito77.4milliontootherequitytransactions.ThisdoesnotaecttheGroupsdistributableprots.iSubsidiariesSubsidiariesarethoseentitiesoverwhichtheGrouphasthepowertogovernthenancialandoperatingpoliciesgenerallyaccompanyingashareholdingomorethanone-halovotingrights.SubsidiariesareullyconsolidatedromthedateonwhichcontrolistranserredtotheGroup.TheexistenceandeectopotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGroupcontrolsanotherentity.ThepurchasemethodoaccountingisusedtoaccountortheacquisitionosubsidiariesbytheGroup.WherecontroloanentityisobtainedduringanancialyearitsresultsareincludedintheStatementoComprehensiveIncomeromthedateonwhichcontrolcommences.Wherecontroloanentityceasesduringanancialyearitsresultsareincludedorthatpartotheyearduringwhichcontrolexisted.IntercompanytransactionsbalancesandunrealisedgainsontransactionsbetweenGroupcompaniesareeliminated.Non-controllinginterestsintheresultsandequityosubsidiariesareshownseparatelyintheconsolidatedStatementsoComprehensiveIncomeandStatementsoFinancialPositionrespectively. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport2013421.SummaryoSignifcantAccountingPoliciescontinuedbPrinciplesoconsolidationcontinuediiAssociatesAssociatesareentitiesoverwhichtheGrouphassignicantinfuencebutnotcontrolorjointcontrolgenerallyaccompanyingashareholdingobetween20and50othevotingrights.InvestmentsinassociatesareaccountedorintheCompanynancialstatementsusingthecostmethodandintheconsolidatednancialstatementsusingtheequitymethodoaccountingaterinitiallybeingrecognisedatcost.TheGroupsinvestmentinassociatesincludestheairvalueogoodwillnetoanyaccumulatedimpairmentlossidentiedonacquisition.TheGroupsshareoitsassociatespost-acquisitionprotsorlossesisrecognisedinprotorlossanditsshareopost-acquisitionmovementsinreservesisrecognisedinothercomprehensiveincome.Thecumulativepost-acquisitionmovementsareadjustedagainstthecarryingamountotheinvestment.DividendsreceivableromassociatesarerecognisedintheCompanysprotorlosswhileintheconsolidatednancialstatementstheyreducethecarryingamountotheinvestment.WhentheGroupsshareolossesinanassociateequalsorexceedsitsinterestintheassociateincludinganyotherunsecuredreceivablestheGroupdoesnotrecogniseurtherlossesunlessithasincurredobligationsormadepaymentsonbehalotheassociate.UnrealisedgainsontransactionsbetweentheGroupanditsassociatesareeliminatedtotheextentotheGroupsinterestintheassociates.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceoanimpairmentotheassettranserred.AccountingpoliciesoassociateshavebeenchangedwherenecessarytoensureconsistencywiththepoliciesadoptedbytheGroup.iiiJointventuresInterestinjointventureentitiesareaccountedorintheconsolidatednancialstatementsusingtheequitymethodandarecarriedatcostbytheCompany.ivTransactionswithnon-controllingpartiesEquitytransactionswithnon-controllingentitiesarerecognisedintheGroupnancialstatementsusingtheeconomicentitymethodwherebytransactionswithnon-controllingpartiesaretreatedastransactionswithequityparticipants.cForeigncurrencyTransactionsandbalancesForeigncurrencytransactionsaretranslatedintotheunctionalcurrencyusingtheexchangeratesprevailingatthedatesothetransactions.Foreignexchangegainsandlossesresultingromthesettlementosuchtransactionsandromthetranslationatyear-endexchangeratesomonetaryassetsandliabilitiesdenominatedinoreigncurrenciesarerecognisedinprotorlossexceptwhendeerredinequityromapplyingcashfowhedgeaccountingornetundingoaoreignoperation.dCashandcashequivalentsForthepurposeotheStatementsoCashFlowscashandcashequivalentsincludescashonhanddepositsheldatcallwithnancialinstitutionsothershort-termhighlyliquidinvestmentswithoriginalmaturitiesothreemonthsorlessthatarereadilyconvertibletocashandwhicharesubjecttoaninsignicantriskochangesinvalue.eInvestmentsandotherfnancialassetsTheGroupclassiesitsnancialassetsintheollowingcategoryloansandreceivables.InvestmentsinsubsidiariesareclassiedseparatelyandareheldatcostintheCompany.Theclassicationdependsonthepurposeorwhichtheinvestmentswereacquired.TheclassicationotheGroupsinvestmentsisdeterminedatinitialrecognition.AtbalancedatetheGrouphadtheollowingnancialassetsLoansreceivablesandtradereceivablesLoansandreceivablesarenon-derivativenancialassetswithxedordeterminablepaymentsthatarenotquotedinanactivemarket.TheyarisewhenanyentitywithintheGroupprovidesmoneyordeerspaymentonordinaryequitytoanexternalpartywithnointentionosellingthereceivableimmediatelyorinthenearutureorarisewithintheGrouponasingleentitybasiswhenoneentityprovidesmoneytoanothermemberotheGroup.Loansandreceivableswithmaturitylessthan12monthsareincludedincurrentassetsandthosewithgreaterthan12monthsmaturityareincludedinnon-currentassets.Loansandreceivablesareinitiallyrecordedatairvalueandthensubsequentlyatamortisedcostusingtheeectiveinterestratemethod.Tradereceivablesarerecognisedatairvaluebeingtheoriginalinvoiceamountandsubsequentlymeasuredatamortisedcostlessprovisionordoubtuldebts.AprovisionordoubtuldebtsisestablishedwhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsothereceivable.Theamountotheprovisionisrecognisedinprotorloss.Whereadebtisknowntobeuncollectibleitisconsideredabaddebtandwritteno.PropertyplantandequipmentCostPropertyplantandequipmentisrecordedatcostlessaccumulateddepreciationandcumulativeimpairmentcharges.Costincludesthosecostsdirectlyattributabletobringingtheassetsintothelocationandworkingconditionnecessaryortheassettobecapableooperatinginthemannerintendedbymanagement.TheestimatedcostodismantlingandremovinginrastructureitemsandrestoringthesiteonwhichtheassetsarelocatedisonlyincludedinthecostotheassettotheextentthattheGrouphasanobligationtorestorethesiteandthecostorestorationisnotrecoverableromthirdparties.Additionsrenewalsandimprovementsarecapitalisedwhilemaintenanceandrepairsareexpensed.Thecarryingvaluesopropertyplantandequipmentarereviewedorimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountsmaynotberecoverablereertonote1i.Anassetscarryingamountiswrittendownimmediatelytoitsrecoverableamountitheassetscarryingamountisgreaterthanitsestimatedrecoverableamount. SouthernCrossAustereoAnnualReport201343DepreciationLandisnotdepreciated.Depreciationonotherassetsiscalculatedonastraight-linebasistowriteothecostopropertyplantandequipmentoveritsestimateduseullie.Estimatesoremaininguseulliearemadeonaregularbasisorallassetswithannualreassessmentsormajoritems.TheexpecteduseullieopropertyplantandequipmentisasollowsBuildings550yearsLeaseholdimprovements316yearsNetworkequipment210yearsCommunicationequipment35yearsOtherplantandequipment220yearsLeasedplantandequipment220yearsgLeasesLeasesopropertyplantandequipmentwheretheGroupaslesseehassubstantiallyalltherisksandrewardsoownershipareclassiedasnanceleases.Financeleasesarecapitalisedattheleasesinceptionatthelowerotheairvalueotheleasedpropertyandthepresentvalueotheminimumleasepayments.Thecorrespondingrentalobligationsnetonancechargesareincludedinotherlong-termpayables.Eachleasepaymentisallocatedbetweentheliabilityandnancechargessoastoachieveaconstantrateonthenancebalanceoutstanding.Theinterestelementothenancecostischargedtoprotorlossovertheleaseperiodsoastoproduceaconstantperiodicrateointerestontheremainingbalanceotheliabilityoreachperiod.ThepropertyplantandequipmentacquiredundernanceleasesaredepreciatedovertheshorterotheassetsuseullieandtheleasetermithereisnoreasonablecertaintythattheGroupwillobtainownershipattheendotheleaseterm.Leasesinwhichasignicantportionotherisksandrewardsoownershipareretainedbythelessorareclassiedasoperatingleases.Paymentsmadeunderoperatingleasesnetoanyincentivesreceivedromthelessorarechargedtoprotorlossonastraightlinebasisovertheperiodothelease.TheGroupsub-leasesbuildingsunderanoperatingleaseandrentrevenueisrecordedasincomeintheprotorlossonastraight-linebasis.hIntangibleassetsFreetoaircommercialtelevisionandradiobroadcastinglicencesTelevisionandradiolicencesareinitiallyrecognisedatcost.AnaloguelicencesarerenewableoraminimalcosteveryveyearsunderprovisionswithintheBroadcastingServicesAct.Digitallicencesattachtotheanaloguelicencesandrenewautomatically.ThedirectorsunderstandthattherevocationoacommercialtelevisionorradiolicencehasneveroccurredinAustraliaandhavenoreasontobelievethelicenceshaveanitelie.Asaresultthereetoaircommercialtelevisionandradiobroadcastinglicenceshavebeenassessedtohaveindeniteuseullives.Accordinglytheyarenotamortisedandaretestedorimpairmentannuallyorwheneverthereisanindicationthatthecarryingvaluemaybeimpairedandarecarriedatcostlessaccumulatedimpairmentlosses.TradenamesTradenamesareinitiallyrecognisedatcost.Thetradenameshavebeenassessedtohaveindeniteuseullives.Accordinglytheyarenotamortisedandaretestedorimpairmentannuallyorwheneverthereisanindicationthatthecarryingvaluemaybeimpairedandarecarriedatcostlessaccumulatedimpairmentlosses.TheGroupstradenamesoperateinestablishedmarketswithlimitedrestrictionsandareexpectedtocontinuetocomplementtheGroupsmediainitiatives.Onthisbasisthedirectorshavedeterminedthattradenameshaveindenitelivesasthereisnooreseeablelimittotheperiodoverwhichtheassetsareexpectedtogeneratenetcashinfows.BrandsBrandsareinitiallyrecognisedatcost.Thebrandshavebeenassessedtohaveindeniteuseullives.Accordinglytheyarenotamortisedandaretestedorimpairmentannuallyorwheneverthereisanindicationthatthecarryingvaluemaybeimpairedandarecarriedatcostlessaccumulatedimpairmentlosses.TheGroupsbrandsoperateinestablishedmarketswithlimitedrestrictionsandareexpectedtocontinuetocomplementtheGroupsmediainitiatives.Onthisbasisthedirectorshavedeterminedthatbrandshaveindenitelivesasthereisnooreseeablelimittotheperiodoverwhichtheassetsareexpectedtogeneratenetcashinfows.OtherintangiblesOtherintangiblesincludingaprogrammingservicesagreementarerecognisedatcostandareamortisedovertheuseullieotheasset2years.GoodwillAllbusinesscombinationsareaccountedorbyapplyingthepurchasemethod.Whereanentityoroperationisacquiredtheidentiablenetassetsacquiredaremeasuredatairvalue.Theexcessotheairvalueothecostoacquisitionovertheairvalueotheidentiablenetassetsacquiredisbroughttoaccountasgoodwill.Transactioncostsareexpensedintheperiodincurred.Goodwillisstatedatcostlessanyimpairmentlosses.Goodwillisallocatedtocash-generatingunitsandisnotamortisedbutistestedatleastannuallyorimpairment.Inrespectoassociatesthecarryingamountogoodwillisincludedinthecarryingamountotheinvestmentintheassociate.Negativegoodwillarisingonanacquisitionisrecogniseddirectlyinprotorlossaterreassessmentotheidenticationandmeasurementothenetassetsacquired.iImpairmentofassetsAssetsthathaveanindeniteuseulliearenotsubjecttoamortisationandaretestedannuallyorimpairment.Assetsthataresubjecttoamortisationarereviewedorimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.Animpairmentlossisrecognisedortheamountbywhichtheassetscarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigheroanassetsairvaluelesscoststosellandvalueinuse.Forthepurposesoassessingimpairmentassetsaregroupedatthelowestlevelsorwhichthereareseparatelyidentiablecashfowscashgeneratingunits. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport2013441.SummaryoSignifcantAccountingPoliciescontinuedjDerivativefnancialinstrumentsTheGroupentersintointerestrateswapagreementstomanageitsnancialrisks.Derivativesareinitiallyrecognisedatairvalueatthedateaderivativecontractisenteredintoandaresubsequentlyremeasuredtotheirairvalue.Themethodorecognisingtheresultinggainorlossdependsonwhetherthederivativeisdesignatedasahedginginstrumentandisothenatureotheitembeinghedged.TheGroupmayhavederivativenancialinstrumentswhichareeconomichedgesbutdonotsatisytherequirementsohedgeaccounting.Gainsorlossesromchangesinairvalueotheseeconomichedgesaretakenthroughprotorloss.IthederivativenancialinstrumentmeetsthehedgeaccountingrequirementstheGroupdesignatesthederivativesaseither1hedgesotheairvalueorecognisedassetsorliabilitiesorarmcommitmentairvaluehedgeor2hedgesohighlyprobableorecasttransactionscashfowhedge.TheGroupdocumentsattheinceptionothetransactiontherelationshipbetweenhedginginstrumentsandhedgeditemsaswellasitsriskmanagementobjectiveandstrategyorundertakingvarioushedgetransactions.TheGroupalsodocumentsitsassessmentsbothathedgeinceptionandonanongoingbasisowhetherthederivativesthatareusedinhedgingtransactionshavebeenandwillcontinuetobehighlyeectiveinosettingchangesinairvaluesorcashfowsohedgeditems.Theairvaluesovariousderivativenancialinstrumentsheldaredisclosedinnote18.kTradeandotherpayablesTheseamountsrepresentliabilitiesorgoodsandservicesprovidedtotheGrouppriortotheendothenancialyearandwhichareunpaid.Theamountsareunsecuredandareusuallypaidwithin60daysorecognition.lGoodsandServicesTaxGSTRevenuesexpensesandassetsarerecognisednetotheamountoGSTexceptwheretheamountoGSTincurredisnotrecoverableromthetaxationauthority.InthesecircumstancestheGSTisrecognisedaspartothecostoacquisitionotheassetoraspartotheexpense.ReceivablesandpayablesarestatedwiththeamountoGSTincluded.ThenetamountoGSTrecoverableromorpayabletotheATOisincludedwithotherreceivablesorpayablesinthebalancesheet.Cashfowsarepresentedonagrossbasis.TheGSTcomponentsocashfowsarisingrominvestingandnancingactivitieswhicharerecoverableromorpayabletotheATOareclassiedasoperatingcashfows.mEmployeebeneftsiWagesandsalariesleaveandotherentitlementsLiabilitiesorunpaidsalariessalaryrelatedcostsandprovisionsorannualleavearerecordedintheStatementoFinancialPositionatthesalaryrateswhichareexpectedtobepaidwhentheliabilityissettled.Provisionsorlongserviceleaveandotherlong-termbenetsarerecognisedatthepresentvalueoexpecteduturepaymentstobemade.Indeterminingthisamountconsiderationisgiventoexpecteduturesalarylevelsandemployeeservicehistories.ExpecteduturepaymentsarediscountedtotheirnetpresentvalueusingratesonCommonwealthGovernmentsecuritieswithtermsthatmatchascloselyaspossibletotheexpecteduturecashfows.iiShare-basedpaymentsShare-basedcompensationbenetsareprovidedtoemployeesviacertainEmployeeAgreements.InormationrelatingtotheseAgreementsissetoutintheRemunerationReport.TheairvalueoentitlementsgrantedundercertainEmployeeAgreementsarerecognisedasanemployeebenetexpensewithacorrespondingincreaseinequity.Theairvalueismeasuredatgrantdateandrecognisedasanexpenseovertheperiodduringwhichtheemployeesbecomeunconditionallyentitledtotheshares.TheairvalueatgrantdateisdeterminedusingaMonteCarlopricingmodelthattakesintoaccountthesharepriceatgrantdateandtheexpecteddividendyieldsharepricevolatilityandtheriskreeinterestrateorthetermotheentitlement.Volatilityisameasureotheunderlyingmovementintheshareprice.Asharesvolatilitymeasurecapturesthecharacteristicsofuctuationsintheshareprice.Theairvalueatgrantdateothesecuritiesgrantedisadjustedtorefectmarketvestingconditionsbutexcludestheimpactoanynon-marketvestingconditionsorexampleprotabilityandsalesgrowthtargets.Non-marketvestingconditionsareincludedinassumptionsaboutthenumberosharesthatareexpectedtobeissued.Ateachbalancesheetdatetheentityrevisesitsestimateothenumberosharesthatareexpectedtobeissued.Theemployeebenetexpenserecognisedeachperiodtakesintoaccountthemostrecentestimate.Theimpactotherevisiontooriginalestimatesianyisrecognisedinprotorlosswithacorrespondingadjustmenttoequity.Wherethetermsotheshare-basedpaymententitlementaremodiedintheavourotheemployeethechangesarerefectedwhendeterminingtheimpactonprotorloss.nRetirementbeneftobligationsTheGroupoperatesadenedcontributionscheme.DefnedcontributionschemeThedenedcontributionschemecomprisesxedcontributionsmadebytheGroupwiththeGroupslegalorconstructiveobligationbeinglimitedtothesecontributions.Contributionstothedenedcontributionschemearerecognisedasanexpenseastheybecomepayable.PrepaidcontributionsarerecognisedintheStatementoFinancialPositionasanassettotheextentthatacashreundorareductionintheuturepaymentsisavailable.oBorrowingsBorrowingsareinitiallyrecognisedatairvaluenetotransactioncostsincurred.Transactioncoststhathavebeenpaidoraccruedorpriortothedrawdownodebtareclassiedasprepayments.Borrowingsaresubsequentlymeasuredatamortisedcost.Anydierencebetweentheproceedsnetotransactioncostsandtheredemptionamountisrecognisedinprotorlossovertheperiodotheborrowingsusingtheeectiveinterestmethod.BorrowingsareclassiedascurrentliabilitiesunlesstheGrouphasanunconditionalrighttodeersettlementotheliabilityoratleast12monthsaterthebalancesheetdate.pBorrowingcostsBorrowingcostsincurredortheconstructionoanyqualiyingassetarecapitalisedduringtheperiodotimethatisrequiredtocompleteandpreparetheassetoritsintendeduseorsale.Otherborrowingcostsareexpensed. SouthernCrossAustereoAnnualReport201345qContributedequitySharesintheCompanyareclassiedasequity.Incrementalcostsdirectlyattributedtotheissueonewsharesareshowninequityasadeductionnetotaxromtheproceeds.rRevenuerecognitionRevenuesarerecognisedatairvalueotheconsiderationreceivedorreceivablenetotheamountoGSTpayabletotherelevanttaxationauthority.FreetoaircommercialradioandtelevisionbroadcastingRevenuerepresentsrevenueearnedprimarilyromthesaleoadvertisingairtimeandrelatedactivitiesincludingsponsorshipandpromotions.Revenueisrecordedwhentheserviceisprovidedbeingprimarilywhentheadvertisementisaired.Commissionspayabletomediaagenciesarerecognisedassellingcosts.Otherregularsourcesooperatingrevenuearederivedromcommercialproductionoradvertisersincludingacilitysharingrevenueandprogramsharingrevenue.Revenueromcommercialproductionisrecognisedoninvoiceatthetimeocompletionothecommercial.InterestrevenueInterestrevenueonloansandreceivablesisrecognisedusingtheeectiveinterestratemethod.OtherservicerevenueOtherservicerevenueisrecognisedwhentheservicehasbeenprovided.RentalrevenueRentalrevenueisrecognisedonastraightlinebasis.sGovernmentgrantsGrantsromthegovernmentortheintroductionoregionaldigitaltelevisionbroadcastingarerecognisedattheirairvalueonentitlementandreceipt.Governmentgrantsrelatingtocostsaredeerredandrecognisedinprotorlossovertheperiodnecessarytomatchthemwiththecoststhattheyareintendedtocompensate.Governmentgrantsrelatingtothepurchaseopropertyplantandequipmentaredeerredandrecognisedinprotorlossonastraightlinebasisovertheexpecteduseullivesotherelatedassets.tIncometaxIncometaxamountsrecognisedintheGroupsnancialstatementsrelatetotaxpayingentitieswithintheGroupandhavebeenrecognisedinaccordancewithGrouppolicy.IncometaxisnotbroughttoaccountinrespectoSCMTaspursuanttotheIncomeTaxAssessmentActtheTrustisnotliableorincometaxprovidedthatitstaxableincomeincludinganyassessablerealisedcapitalgainsisullydistributedtounitholderseachyear.Theincometaxexpenseorrevenueortheyearisthetaxpayableonthecurrentyearstaxableincomebasedontheapplicabletaxrateoreachjurisdictionadjustedbychangesindeerredtaxassetsandliabilitiesattributabletotemporarydierencesbetweenthetaxbasesoassetsandliabilitiesandtheircarryingamountsinthenancialstatementsandtounusedtaxlosses.Indeterminingtheextentotemporarydierencesoassetsthecarryingamountoassetsisgenerallyassumedtoberecoveredthroughuseexceptornon-amortisingidentiableintangibleassetssuchasreetoaircommercialtelevisionandradiobroadcastinglicencesbrandsandtradenameswherethecarryingamountsareassumedtoberecoveredthroughsaleunlessthereisevidenceorecoverythroughuse.Deerredtaxassetsandliabilitiesarerecognisedortemporarydierencesatthetaxratesexpectedtoapplywhentheassetsarerecoveredorliabilitiesaresettledbasedonthosetaxrateswhichareenactedorsubstantivelyenactedoreachjurisdiction.Therelevanttaxratesareappliedtothecumulativeamountsodeductibleandtaxabletemporarydierencestomeasurethedeerredtaxassetorliability.Deerredtaxassetsarerecognisedordeductibletemporarydierencesandunusedtaxlossesonlyiitisprobablethatuturetaxableamountswillbeavailabletoutilisethosetemporarydierencesandlosses.uFairvalueestimationTheairvalueonancialassetsandnancialliabilitiesmustbeestimatedorrecognitionandmeasurementorordisclosurepurposes.Theairvalueonancialinstrumentsthatarenottradedinanactivemarketorexampleunlistedconvertiblenotesisdeterminedusingvaluationtechniques.TheGroupusesavarietyomethodsandmakesassumptionsthatarebasedonmarketconditionsexistingateachbalancedate.Othertechniquessuchasestimateddiscountedcashfowsareusedtodetermineairvalueortheremainingnancialinstruments.Theairvalueointerestrateswapsiscalculatedasthepresentvalueotheestimateduturecashfows.Thenominalvaluelessestimatedcreditadjustmentsotradereceivablesandpayablesareassumedtoapproximatetheirairvalues.TheairvalueonancialliabilitiesordisclosurepurposesisestimatedbydiscountingtheuturecontractualcashfowsatthecurrentmarketinterestratethatisavailabletotheGrouporsimilarnancialinstruments.vDividendsProvisionismadeortheamountoanydividenddeclaredbeingappropriatelyauthorisedandnolongeratthediscretionotheCompanyonorbeoretheendothenancialyearbutnotdistributedattheendothereportingperiod.wEarningspershareiBasicearningspershareBasicearningspershareiscalculatedbydividingtheprotorlossattributabletoequityholdersotheCompanyexcludinganycostsoservicingequityotherthanordinarysharesbytheweightedaveragenumberosharesoutstandingduringthenancialyear.iiDilutedearningspershareDilutedearningspershareadjuststheguresusedinthedeterminationobasicearningspersharetotakeintoaccounttheaterincometaxeectointerestandothernancingcostsassociatedwithdilutivepotentialsharesandtheweightedaveragenumberosharesassumedtohavebeenissuedornoconsiderationinrelationtodilutivepotentialshares. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport2013461.SummaryoSignifcantAccountingPoliciescontinuedxProvisionsAprovisionisrecognisedwhenthereisalegalequitableorconstructiveobligationasaresultoapasteventanditisprobablethatauturesacriceoeconomicbenetswillberequiredtosettletheobligationthetimingoramountowhichisuncertain.Wherethereareanumberosimilarobligationsthelikelihoodthatanoutfowwillberequiredinsettlementisdeterminedbyconsideringtheclassoobligationsasawhole.Aprovisionisrecognisedevenithelikelihoodoanoutfowwithrespecttoanyoneitemincludedinthesameclassoobligationsmaybesmall.Provisionsaremeasuredatthepresentvalueomanagementsbestestimateotheexpenditurerequiredtosettlethepresentobligationatthebalancesheetdate.Thediscountrateusedtodeterminethepresentvaluerefectscurrentmarketestimatesothetimevalueomoneyandtherisksspecictotheliability.Theincreaseintheprovisionduetothepassageotimeisrecognisedasinterestexpense.yRoundingoamountsTheGroupandtheCompanyareoakindreerredtoinClassOrder98100issuedbytheAustralianSecuritiesandInvestmentsCommissionrelatingtotheroundingooamountsinthenancialreport.AmountsinthenancialreporthavebeenroundedoinaccordancewiththatClassOrdertothenearestthousanddollarsunlessotherwiseindicated.zImpactonewaccountingpoliciesTheGrouphasadoptedallthenewandrevisedStandardsandInterpretationsissuedbytheAustralianAccountingStandardsBoardtheAASBthatarerelevanttoitsoperationsandeectiveortheannualreportingperiodcommencingon1July2012whichincludeiAmendmentstoAASB7101and134asaconsequenceofAASB2010-4FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProjectTheadoptionotheseamendmentshasnotresultedinanychangestotheGroupsaccountingpoliciesandhasnoeectontheamountsreportedorthecurrentorpriorperiods.aaImpactostandardsissuedbutnotyetappliedCertainnewaccountingstandardsandinterpretationshavebeenpublishedthatarenotmandatoryor30June2013reportingperiods.TheGroupsassessmentotheimpactorelevantnewstandardsandinterpretationsissetoutbelow.AASB9FinancialInstrumentsandAASB2009-11AmendmentstoAustralianAccountingStandardsarisingromAASB9AASB2010-7AmendmentstoAustralianAccountingStandardsarisingromAASB9December2010andAASB2012-6AmendmentstoAustralianAccountingStandardsarisingromAASB9September2012eectiverom1January2015AASB1053ApplicationoTiersoAustralianAccountingStandardsandAASB2010-2AmendmentstoAustralianAccountingStandardsarisingromReducedDisclosureRequirementsJuly2010eective1July2013AASB2011-4AmendmentstoAustralianAccountingStandardstoRemoveKeyManagementPersonnelDisclosureRequirementseectiverom1July2013AASB10ConsolidatedFinancialStatementsAASB11JointArrangementsAASB12DisclosureoInterestsinOtherEntitiesrevisedAASB127SeparateFinancialStatementsandAASB128InvestmentsinAssociatesandJointVenturesandAASB2011-7AmendmentstoAustralianAccountingStandardsarisingromtheConsolidationandJointArrangementsStandardseectiverom1January2013AASB13FairValueMeasurementandAASB2011-8AmendmentstoAustralianAccountingStandardsarisingromAASB13eective1January2013AASB2011-9AmendmentstoAustralianAccountingStandardsPresentationoItemsoOtherComprehensiveIncomeeective1July2012RevisedAASB119EmployeeBenetsAABS2011-10AmendmentstoAustralianAccountingStandardsarisingromAASB119andAASB2011-11AmendmentstoAASB119arisingromReducedDisclosureRequirementseective1January2013AASB2012-1AmendmentstoAustralianAccountingStandardsFairValueMeasurementReducedDisclosureRequirementseective1July2013AASB2012-5AmendmentstoAustralianAccountingStandardarisingromAnnualImprovements-20092011Cycleeective1January2013AASB2012-10AmendmentstoAustralianAccountingStandardsTransitionguidanceandotherAmendmentsclaricationsonlynoseparatedisclosureneededeective1January2013AmendmentstoIAS36ImpairmentoAssetseective1January2014OsettingFinancialAssetsandFinancialLiabilitiesAmendmentstoIAS32eective1July2014andDisclosuresOsettingFinancialAssetsandFinancialLiabilitiesAmendmentstoIFRS7eective1July2013TheCompanycurrentlydoesnotexpectthatanyadjustmentswillbenecessaryasaresultoapplyingtheserevisedaccountingstandards.Theimpactonuturetransactionswillneedtobeassessedastheyoccur.bbCriticalaccountingestimatesandjudgementThepreparationothenancialreportinaccordancewithAustralianAccountingStandardsrequirestheuseocertaincriticalaccountingestimates.Italsorequiresmanagementtoexercisejudgementintheprocessoapplyingtheaccountingpolicies.Estimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotheractorsincludingexpectationsoutureeventsthatmayhaveanancialimpactontheentityandthatarebelievedtobereasonableunderthecircumstances.Managementbelievestheestimatesusedinthepreparationothenancialreportarereasonable.Actualresultsintheuturemaydierromthosereported. SouthernCrossAustereoAnnualReport201347TheestimatesandassumptionsthathaveariskocausingamaterialadjustmenttothecarryingamountsoassetsandliabilitieswithinthenextnancialyeararediscussedbelowiImpairmentogoodwillandintangibleassetswithindefniteuseullivesInaccordancewiththeaccountingpolicystatedinnotes1hand1itheGrouptestsatleastannuallywhethergoodwillandintangibleassetswithindeniteuseulliveshavesueredanyimpairmentandwhenthereisanindicationoimpairment.Thetestsincorporateassumptionsregardingutureeventswhichmayormaynotoccurresultingintheneedoruturerevisionsoestimates.Therearealsojudgementsinvolvedindeterminationocashgeneratingunits.Reertonote12ordetailsotheseassumptions.iiIncometaxesTheGroupissubjecttoincometaxesinAustraliaandinsomeoitsoreignoperations.CurrentlytheGrouphasraisedacurrentprovisionorincometaxinrespectoamendedtaxassessmentsraisedbytheATOinrespectodisalloweddeductionsonredeemablepreerencesharesbetween2006and2009.TheGrouphasobjectedagainsttheassessments.ShouldtheGroupbesuccessulinitsobjectionagainsttheamendedassessmentsthetaxliabilitywillbereversedtotheprotorloss.Reertonote4orurtherdetailsotaxrisks.ccDerivativenancialinstrumentsTheairvaluesoover-the-counterderivativesaredeterminedusingvaluationtechniquesadoptedbythedirectorswithassumptionsthatarebasedonmarketconditionsexistingateachbalancesheetdate.Theairvaluesointerestrateswapsarecalculatedasthepresentvaluesotheestimateduturecashfows.ddHedgeaccountingTheGroupdesignatedinterestratesswapsheldasat1July2011ascashfowhedgesandhasappliedhedgeaccountingromthisdate.TheGroupdocumentstherelationshipbetweenhedginginstrumentsandhedgeditemsaswellasitsriskmanagementobjectiveandstrategyorundertakingthehedgetransactions.TheGroupalsodocumentsitsassessmentbothathedgeinceptionandonanongoingbasisowhetherthederivativesthatareusedinhedgingtransactionshavebeenandwillcontinuetobehighlyeectiveinosettingchangesincashfowsohedgeditems.Theairvaluesoderivativenancialinstrumentsusedorhedgingpurposesarepresentedwithinthebalancesheet.MovementsinthehedgingreserveareshownwithintheStatementoChangesinEquity.Theullairvalueoahedgingderivativeisclassiedasanon-currentassetorliabilitywhentheremainingmaturityothehedgeditemismorethan12monthsitisclassiedasacurrentassetorliabilitywhentheremainingmaturityothehedgeditemislessthan12months.eeCashfowhedgeTheeectiveportionochangesintheairvalueoderivativesthataredesignatedandqualiyascashfowhedgesisrecognisedinothercomprehensiveincomeandaccumulatedinreservesinequity.Thegainorlossrelatingtotheineectiveportionisrecognisedimmediatelyinprotorloss.Amountsaccumulatedinequityarereclassiedtoprotorlossintheperiodswhenthehedgeditemaectsprotorlossorinstancewhentheorecastsalethatishedgedtakesplace.Thegainorlossrelatingtotheeectiveportionointerestrateswapshedgingvariablerateborrowingsisrecognisedinprotorlosswithininterestexpenseandotherborrowingcosts.Whenahedginginstrumentexpiresorissoldorterminatedorwhenahedgenolongermeetsthecriteriaorhedgeaccountinganycumulativegainorlossexistinginequityatthattimeremainsinequityandisrecognisedwhentheorecasttransactionisultimatelyrecognisedinprotorloss.Whenaorecasttransactionisnolongerexpectedtooccurthecumulativegainorlossthatwasreportedinequityisimmediatelyreclassiedtoprotorloss.ParententitynancialinormationThenancialinormationortheparententitySouthernCrossMediaGroupLimitedtheCompanydisclosedinnote26hasbeenpreparedonthesamebasisastheconsolidatednancialstatementsexceptassetoutbelow.iInvestmentsinsubsidiariesassociatesandjointventureentitiesInvestmentsinsubsidiariesareaccountedoratcostinthenancialstatementsotheCompany.iiTaxconsolidationlegislationTheCompanyanditswholly-ownedAustraliancontrolledentitieshaveimplementedthetaxconsolidationlegislationaso23November2005.TheheadentitybeingtheCompanyandthecontrolledentitiesinthetaxconsolidatedgroupaccountortheirowncurrentanddeerredtaxamounts.Thesetaxamountsaremeasuredasieachentityinthetaxconsolidatedgroupcontinuestobeastand-alonetaxpayerinitsownright.InadditiontoitsowncurrentanddeerredtaxamountstheCompanyalsorecognisesthecurrenttaxliabilitiesorassetsandthedeerredtaxassetsarisingromunusedtaxlossesandunusedtaxcreditsassumedromcontrolledentitiesinthetaxconsolidatedgroup.Theentitieshavealsoenteredintoataxundingagreementunderwhichthewholly-ownedentitiesullycompensatetheCompanyoranycurrenttaxpayableassumedandarecompensatedbytheCompanyoranycurrenttaxreceivableanddeerredtaxassetsrelatingtounusedtaxlossesorunusedtaxcreditsthataretranserredtotheCompanyunderthetaxconsolidationlegislation.Theundingamountsaredeterminedbyreerencetotheamountsrecognisedinthewholly-ownedentitiesnancialstatements.Theamountsreceivablepayableunderthetaxundingagreementaredueuponreceiptotheundingadviceromtheheadentitywhichisissuedassoonaspracticableatertheendoeachnancialyear.Theheadentitymayalsorequirepaymentointerimundingamountstoassistwithitsobligationstopaytaxinstalments.Assetsorliabilitiesarisingundertaxundingagreementswiththetaxconsolidatedentitiesarerecognisedascurrentamountsreceivableromorpayabletootherentitiesinthegroup.Anydierencebetweentheamountsassumedandamountsreceivableorpayableunderthetaxundingagreementarerecognisedasacontributiontoordistributionromwholly-ownedtaxconsolidatedentities.iiiFinancialguaranteesWheretheparententityhasprovidednancialguaranteesinrelationtoloansandpayablesosubsidiariesornocompensationtheairvaluesotheseguaranteesareaccountedorascontributionsandrecognisedaspartothecostotheinvestment. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport2013482.ProftortheYearTheproftbeoreincometaxromcontinuingoperationsincludedtheollowingspecifcitemsorevenueotherincomeandexpensesConsolidated20130002012000RevenueromcontinuingoperationsSalesrevenue636993681718Dividendincome92Governmentgrantrevenue311Rentalrevenue55085192Netproftondisposalopropertyplantandequipment130Totalrevenueromcontinuingoperations642631687313Netproftonsaleoinvestmentsa10483InterestrevenueExternalbanks37312724DepreciationexpenseLandandbuildings9811655Plantandequipment2297926419Leaseholdimprovements20051872Plantandequipmentunderfnanceleases66133Totaldepreciationexpense2603130079AmortisationexpenseProgrammingservicesagreement445444Totalamortisationexpense445444Totaldepreciationandamortisationexpense2647630523InterestexpenseandotherborrowingcostsExternalbanks5003755814Interestaccruedonamendedtaxassessments10889Amortisationoborrowingcosts49104934Financechargesoncapitalisedleases3062Totalinterestexpenseandotherborrowingcosts5497771699Rentalexpenserelatingtooperatingleasesincludedinoccupancycosts2306525570Defnedcontributionplanexpenseincludedinemployeeexpenses1252712731aDuringtheyeartheGroupdivestedoasubsidiarythatheldtwocommercialFMradiobroadcastinglicencesintheSunshineCoastregion. SouthernCrossAustereoAnnualReport2013493.RemunerationofAuditorsConsolidated20132012aAuditservicesPricewaterhouseCoopersAustralianfrmStatutoryauditandreviewofnancialreports525000475000Totalremunerationforauditservices525000475000bNon-auditservicesPricewaterhouseCoopersAustralianfrmTaxcomplianceservices120505500Regulatoryreturns1000050000Otherassuranceservices21000Otherconsultingservices6969084600Totalremunerationfornon-auditservices91740161100Total616740636100 NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport2013504.IncomeTaxExpenseTheincometaxexpenseorthenancialyeardiersromtheamountcalculatedonthenetresultromcontinuingoperations.ThedierencesarereconciledasollowsConsolidated20130002012000IncometaxexpensebeneftCurrenttax2701770970Deerredtax10141397103715831260DeerredincometaxexpensebeneftincludedinincometaxexpensecomprisesIncreaseinnetdeerredtaxassets75031812Adjustmentorprioryears26381995Adjustmentorresettaxcostbaseontaxconsolidation395271014139710ReconciliationoincometaxexpensetoprimaacietaxpayableProtbeoreincometaxexpense133269126282TaxattheAustraliantaxrateo303998137885Taxonamendedassessments32874Adjustmentsorresettaxcostbaseontaxconsolidation39527TaxeectoamountswhicharenotdeductibletaxableincalculatingtaxableincomeShareonetlossesoassociates200199Othernon-deductibleexpensesdeductibleexpensesnon-assessableincome56611824Adjustmentsrecognisedinthecurrentyearinrelationtodeerredtaxoprioryears26381995Incometaxexpense3715831260Fortheyearended30June2013theCompanyhad0.97millionoincometaxexpense20125.8millionbenetrecogniseddirectlyinequityinrelationtocashfowhedgeswithacorrespondingdeerredtaxliability2012assetbeingrecognised.Therearenounusedtaxlossesorwhichnodeerredtaxassethasbeenrecognised.TaxAuditTheCompanywasthesubjectoaspecicissuetaxauditbytheAustralianTaxationOceATOinrelationtotheincomeyearsended30June2006to30June2009.AspartotheauditconsistentwiththeATOsspecicocusontheapplicationospecicdebtequityrulestostapledgroupsunderitsComplianceProgramorthe20102011yearthetaxdeductibilityopaymentsoncertainredeemablepreerencesharesRPSissuedbytheCompanywasconsidered.AttheconclusionotheaudittheATOraisedamendedassessmentsinrelationtotheincomeyearsended30June2006to30June2009oranamountoprimarytaxo32.8millionandShortallInterestChargeSICo10.9million.TheCompanyhaslodgedobjectionsagainsteachotheamendedassessmentsandtheSICimposedandhasrecognisedtheprimarytaxassessmentasacurrenttaxliabilityandtheSICasacurrentpayableasat30June2013.ResetTaxCostBaseOn29March2011theGroupacquiredacontrollinginterestinthesharecapitaloAustereoaleadingAustraliancommercialradiobroadcasterwithstationsinallmainlandAustralianstatecapitalcities.On17May2011theGroupacquired100othesharecapitaloAustereoincludinggaining100ownershipoRadioNewcastlePtyLtdRadioNewcastle.Asitwasnotknownat29March2011thattheGroupwouldgain100ownershipoAustereoandRadioNewcastledeerredtaxassetsandliabilitiesatacquisitionwerecalculatedwithreerencetotheexistingtaxcostbasesothoseassetsandliabilities.When100ownershipwasachievedandtheAustereogroupandRadioNewcastlejoinedtheSouthernCrossMediaGroupLimitedtaxconsolidatedgrouptaxcostbaseswereresetresultinginanincometaxbeneto39.5millionbeingrecognisedinprotortheyearended30June2012. SouthernCrossAustereoAnnualReport2013515.DividendsPaidandProposedThedividendswerepaidandpayableasfollowsConsolidated20130002012000ThedividendswerepaidpayableasollowsInterimdividendpaidforthehalfyearended31Decemberfullyfrankedatthetaxrateof303171935230Finaldividendpaidfortheyearended30Junefullyfrankedatthetaxrateof3035243211736696256403DividendspaidincashorsatisfedbytheissueosharesunderthedividendreinvestmentplanwereasollowsPaidincash66962564036696256403CentspershareCentspershareInterimdividendpaidforthehalfyear31December4.55.0Finaldividendpaidfortheyearended30June5.03.09.58.0TheGrouphas91.7millionoffrankingcreditsat30June2013201282.6million.6.CurrentAssetsCashandCashEquivalentsConsolidated20130002012000Cashatbank102906971757.CurrentAssetsReceivablesConsolidated20130002012000CurrentTradereceivables123124123021Provisionfordoubtfuldebtsa6011556Prepayments51434764Other19726394129638132623aImpairedtradereceivablesTheGrouphasrecognisedincomeinrespectofbadanddoubtfultradereceivablesduringtheyearended30June2013of278822012expenseof415000.Thisprovisionisbasedonknownbaddebtsandpastexperienceforreceiptoftradereceivables. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport2013528.Non-CurrentAssetsReceivablesConsolidated20130002012000Non-currentRefundabledeposits539520Relatedparties9421749Other4740352762215796Thecarryingamountsofthenon-currentreceivablesapproximatetheirfairvalue.9.Non-CurrentAssetsInvestmentsAccountedforUsingtheEquityMethodConsolidated20130002012000Sharesinassociatesequitymethod1367710581aCarryingamountsInformationrelatingtoassociatesissetoutbelowOwnershipinterestConsolidatedNameofcompanyCountryoforiginPrincipalactivity2013201220130002012000GoldCoastTranslatorPtyLtdAustraliaRentalofatransmissionfacility25.025.09494RegionalTamPtyLtdAustraliaAcquisitionanddistributionofTVratings36.036.099TasmanianDigitalTelevisionPtyLtdAustraliaOperationofaTVstationTasmania50.050.077458039DarwinDigitalTelevisionPtyLtdAustraliaOperationofaTVstationDarwin50.050.0251615CentralDigitalTelevisionPtyLtdAustraliaOperationofaTVstationCentral50.050.0EasternAustraliaSatelliteBroadcastersPtyLtdAustraliaBuildingofdigitalregionalassets50.050.0CanberraFMRadioPtyLtdAustraliaDormantentity50.050.0BlackMountainBroadcastersPtyLtdAustraliaDormantentity50.050.0SydneyFMFacilitiesPtyLtdAustraliaRentalofatransmissionfacility50.050.0615615MelbourneFMFacilitesPtyLtdAustraliaRentalofatransmissionfacility50.050.0PerthFMFacilitiesPtyLtdAustraliaRentalofatransmissionfacility66.7166.71279289DigitalRadioBroadcastingSydneyPtyLtdAustraliaDigitalradiobroadcasting22.622.6834834DigitalRadioBroadcastingMelbournePtyLtdAustraliaDigitalradiobroadcasting18.2218.221414DigitalRadioBroadcastingBrisbanePtyLtdAustraliaDigitalradiobroadcasting25.025.02020DigitalRadioBroadcastingAdelaidePtyLtdAustraliaDigitalradiobroadcasting33.333.32626DigitalRadioBroadcastingPerthPtyLtdAustraliaDigitalradiobroadcasting33.333.32626DigitalMusicDistributionPtyLtdAustraliaDigitalMusicDistribution33.33754GetOutsideGroupPtyLtdAustraliaMediaEntertainmentBusiness50.01013677105811Whilstmorethan50ofPerthFMFacilitiesPtyLtdisownedbytheGroupitdoesnotcontrolthevotingrightsasallshareholdersarerequiredtoagreeonmaterialoperatingmatters.2DuetothenatureandtreatmentoftheDigitalRadioBroadcastingoperationsthe18.2investmentinDigitalRadioBroadcastingMelbournePtyLtdhasbeenrecognisedasanassociate. SouthernCrossAustereoAnnualReport201353bMovementsincarryingamountsConsolidated20130002012000Carryingamountatthebeginningothefnancialyear1058111198Shareolossesaterincometax668665Acquisitionsoassociates3764Contributionstoassociates48Carryingamountattheendothefnancialyear1367710581cDetailsointerestinassociatesConsolidated20130002012000ShareofassociatesassetsandliabilitiesCurrentassets37953045Non-currentassets1779510195Totalassets2159013240Currentliabilities2248236Non-currentliabilities56652423Totalliabilities79132659Netassets1367710581ShareofassociatesrevenueexpensesandresultsRevenue32733220Expenses39413885Proftbeoreincometax668665IncometaxexpenseNetlossaccountedorusingtheequitymethod668665ShareoassociatescontingentliabilitiesShareocontingentliabilitiesincurredjointlywithotherinvestorsContingentliabilitiesrelatingtoliabilitiesotheassociateorwhichtheCompanyisseverallyliable NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport20135410.Non-CurrentAssetsOtherFinancialAssetsConsolidated20130002012000Availableforsaleinvestmentsatfairvalue11014111.Non-CurrentAssetsPropertyPlantandEquipmentConsolidated20130002012000Landandbuildingsatcost4991048664LessAccumulateddepreciation1246611145Totallandandbuildingsnet3744437519Leaseholdimprovementsatcost3488133475LessAccumulateddepreciation1626914252Totalleaseholdimprovementsnet1861219223Plantandequipmentatcost387525369694LessAccumulateddepreciation280365260887Totalplantandequipmentnet107160108807Leasedplantandequipmentatcost612772LessAccumulateddepreciation370371Totalleasedplantandequipmentnet242401Assetsunderconstructionatcost71376567Totalpropertyplantandequipmentatcost480065459172LessTotalaccumulateddepreciation309470286655Totalpropertyplantandequipmentnet170595172517 SouthernCrossAustereoAnnualReport201355ReconciliationsothecarryingamountsopropertyplantandequipmentatthebeginningandendoeachyeararesetoutbelowConsolidated20130002012000LandandbuildingsCarryingamountatthebeginningothefnancialyear3751941078Additions479163Disposals2203Depreciationexpense9811655Transers427136Carryingamountattheendothefnancialyear3744437519LeaseholdimprovementsCarryingamountatthebeginningothefnancialyear1922318040Additions1364325Disposals54712Depreciationexpense20051872Transers5772742Carryingamountattheendothefnancialyear1861219223PlantandequipmentCarryingamountatthebeginningothefnancialyear108807114537Additions1854812718Disposals914111Depreciationexpense2297926419Transers36988082Carryingamountattheendothefnancialyear107160108807 NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport20135611.Non-CurrentAssetsPropertyPlantandEquipmentcontinuedConsolidated20130002012000LeasedplantandequipmentCarryingamountatthebeginningothefnancialyear401490Additions44Disposals93Depreciationexpense66133Carryingamountattheendothefnancialyear242401AssetsunderconstructionCarryingamountatthebeginningothefnancialyear65679533Transers483210959Additions54027993Carryingamountattheendothefnancialyear71376567Totalpropertyplantandequipmentnet17059517251712.Non-CurrentAssetsIntangibleAssetsConsolidated20130002012000CommercialradioTVbroadcastlicencesatcost15895741595282LessimpairmentchargesTotallicencesnet15895741595282Tradenamesatcost279139LessimpairmentchargesTotalTradenamesnet279139Brandsatcost8890088900LessimpairmentchargesTotalbrandsnet8890088900Programmingservicesagreementatcost10001000Lessaccumulatedamortisation1000555Totalprogrammingservicesagreementnet445Goodwillatcost352129352124LessimpairmentchargesTotalgoodwillnet352129352124Totalintangiblesatcost20318822037445Lesstotalaccumulatedamortisationandimpairmentcharges1000555Totalintangiblesnet20308822036890 SouthernCrossAustereoAnnualReport201357Consolidated20130002012000CommercialradioTVbroadcastlicencesCarryingamountatthebeginningothefnancialyear15952821595282Disposalosubsidiaries5708Carryingamountattheendothefnancialperiod15895741595282TradenamesCarryingamountatthebeginningothefnancialyear139117Additions14022Carryingamountattheendothefnancialyear279139BrandsCarryingamountatthebeginningothefnancialyear8890088900Carryingamountattheendothefnancialperiod8890088900ProgrammingservicesagreementCarryingamountatthebeginningothefnancialyear445Acquisitionosubsidiaries889Amortisationexpense445444Carryingamountattheendothefnancialperiod445GoodwillCarryingamountatthebeginningothefnancialyear352124351741Additions5383Carryingamountattheendothefnancialyear352129352124Totalintangiblesnet20308822036890 NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport20135812.Non-CurrentAssetsIntangibleAssetscontinuedaImpairmenttestsorlicencestradenamesbrandsandgoodwillThevalueolicencestradenamesbrandsandgoodwillisallocatedtotheGroupscashgeneratingunitsCGUsidentiedasregionalreetoaircommercialradioandtelevisionbroadcastingRegionalreetoairbroadcastingandmetropolitanreetoaircommercialradiobroadcastingMetroreetoairbroadcasting.TherecoverableamountotheRegionalreetoairbroadcastingCGUat30June2013and30June2012andtheMetroreetoairbroadcastingCGUat30June2013and30June2012wasdeterminedbasedonavalueinusediscountedcashfowDCFmodel.AllocationofgoodwillandotherintangibleassetsRegionalfreetoairbroadcastingCGUMetrofreetoairbroadcastingCGUTotal2013000000000GoodwillallocatedtoCGU31639635733352129IndenitelivedintangibleassetsallocatedtoCGU8174538613001678753Totalgoodwillandindefnitelivedintangibleassets11338498970332030882ValueinuseassumptionsseepartbRevenuegrowthForecastPeriod5.03.9CostgrowthForecastPeriod4.02.9Long-termgrowthrateterminalvalue3.03.0Discountratepre-tax11.311.5RegionalfreetoairbroadcastingCGUMetrofreetoairbroadcastingCGUTotal2012000000000GoodwillallocatedtoCGU31639135733352124IndenitelivedintangibleassetsallocatedtoCGU8230218613001684321Totalgoodwillandindefnitelivedintangibleassets11394128970332036445ValueinuseassumptionsseepartbRevenuegrowthForecastPeriod3.62.7CostgrowthForecastPeriod4.13.1Long-termgrowthrateterminalvalue3.03.0Discountratepre-tax10.811.0bKeyassumptionsusedorvalueinusecalculationsThevalueinusecalculationsusecashfowprojectionsbasedonthe2014nancialbudgetsextendedoverthesubsequentouryearperiodForecastPeriodusingestimatedgrowthratesapprovedbytheBoard.Terminalgrowthratesdonotexceedthelong-termindustrygrowthrates.Cashfowsbeyondtheveyearperiodareextrapolatedusinggrowthratesthatdonotexceedthelong-termaveragegrowthrateorthebusinessinwhichtheCGUoperatesreertothetableabove.Thediscountrateusedrefectsspecicrisksrelatingtotherelevantsegmentsandtheeconomiesinwhichtheyoperatereertothetableabove.cImpactoareasonablypossiblechangeinkeyassumptionsRegionalfreetoairbroadcastingAt30June2013anincreaseinthediscountrateo1.5to12.9torefectahighercostodebtnancethancurrentlyorecastorotherchangesinthecostoequitywouldresultintheregionalreetoairbroadcastingCGUcarryingamountexceedingitsrecoverableamount.Inadditionitherevenuegrowthassumptionwastodecreaserom5.0to1.9oroperatingexpensegrowthassumptionwastoincreaserom4.0to8.5overtheForecastPerioditwouldresultintheregionalreetoairbroadcastingCGUcarryingamountexceedingitsrecoverableamount.At30June2013theamountbywhichtherecoverableamountexceededthecarryingvalueotheassetsallocatedtotheregionalreetoairbroadcastingCGUwas232.9million. SouthernCrossAustereoAnnualReport201359At30June2012anincreaseinthediscountrateo1.5to12.3torefectahighercostodebtnancethancurrentlyorecastorotherchangesinthecostoequitywouldresultintheregionalreetoairbroadcastingCGUcarryingamountexceedingitsrecoverableamount.Inadditionitherevenuegrowthassumptionwastodecreaserom3.4to2.9oroperatingexpensegrowthassumptionwastoincreaserom4.4to5.2overtheForecastPerioditwouldresultintheregionalreetoairbroadcastingCGUcarryingamountexceedingitsrecoverableamount.At30June2012theamountbywhichtherecoverableamountexceededthecarryingvalueotheassetsallocatedtotheregionalreetoairbroadcastingCGUwas230.9million.MetrofreetoairbroadcastingAt30June2013anincreaseinthediscountrateo2.3to13.8torefectahighercostodebtnancethancurrentlyorecastorotherchangesinthecostoequitywouldresultinthemetroreetoairbroadcastingCGUcarryingamountexceedingitsrecoverableamount.Inadditionitherevenuegrowthassumptionwastodecreaserom3.9to1.9oroperatingexpensegrowthassumptionwastoincreaserom2.9to11.9overtheForecastPerioditwouldresultinthemetroreetoairbroadcastingCGUcarryingamountexceedingitsrecoverableamount.At30June2013theamountbywhichtherecoverableamountexceededthecarryingvalueotheassetsallocatedtothemetroreetoairbroadcastingCGUwas243.6million.At30June2012anincreaseinthediscountrateo2to13torefectahighercostodebtnancethancurrentlyorecastorotherchangesinthecostoequitywouldresultinthemetroreetoairbroadcastingCGUcarryingamountexceedingitsrecoverableamount.Inadditionitherevenuegrowthassumptionwastodecreaserom2.7to1.7oroperatingexpensegrowthassumptionwastoincreaserom0.6to1.9overtheForecastPerioditwouldresultinthemetroreetoairbroadcastingCGUcarryingamountexceedingitsrecoverableamount.At30June2012theamountbywhichtherecoverableamountexceededthecarryingvalueotheassetsallocatedtothemetroreetoairbroadcastingCGUwas216.7million.13.DeferredTaxesConsolidated20130002012000ThebalancecomprisestemporarydierencesattributabletoDoubtuldebts180707Propertyplantandequipment8631300Licences1406014060Brand874874Acquisitioncosts49118981Creditorsandaccruals20303567Unearnedrevenue551274Employeebenets63836627Provisions28273586Interestrateswaps57217275Other967760Netbalance900319143DisclosedasDeerredtaxassets900319143MovementsBalanceatthebeginningothenancialyear1914320584Adjustmentrelatingtoprioryears26381995Creditedchargedtoincomestatement750337715Otheradjustment117Balanceattheendothefnancialyear900319143Deerredtaxestoberecoveredatermorethan12months34392622Deerredtaxestoberecoveredwithin12months1244216521900319143ResettaxcostbaseWhen100ownershipwasgainedotheAustereoGroupandRadioNewcastletheyjoinedtheSouthernCrossMediaGroupLimitedtaxconsolidatedgroupandtaxcostbaseswereresetresultinginanincometaxbeneto39.5millionbeingrecognisedinprotortheyearended30June2012. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport20136014.SubsidiariesTheconsolidatedfnancialstatementsincorporatetheassetsliabilitiesandresultsotheollowingsubsidiariesinaccordancewiththeaccountingpolicydescribedinnote1bNameofentityCountryofincorporationClassofsharesunitsEffectiveownershipinterest2013Effectiveownershipinterest2012SouthernCrossMediaTrustSCMTAustraliaOrdinary100100SCMNo5LimitedSCM5AustraliaOrdinary100100SCMNo1LimitedSCM1AustraliaOrdinary100100SouthernCrossMediaInternationalLimitedSCMILandcontrolledentitiesBermudaOrdinary100100SouthernCrossMediaAustraliaHoldingsPtyLimitedSCMAHLAustraliaOrdinary100100SouthernCrossAustereoCommunityFoundationLimitedSCACFAustraliaOrdinary100100SouthernCrossMediaGroupInvestmentsPtyLtdAustraliaOrdinary100naSouthernCrossAustereoPtyLimitedSCAPLandcontrolledentitiesAustraliaOrdinary100100Theproportionoownershipinterestisequaltotheproportionovotingpowerheldunlessotherwiseindicated.15.CurrentLiabilitiesPayablesConsolidated20130002012000Tradecreditors775319521GSTpayable38865267Otherpayablesincludingaccruedexpenses8218282460Deerredincome120741099610589511824416.CurrentLiabilitiesProvisionsConsolidated20130002012000Employeebenefts1867719393OnerousLeasereernote195532022Leaseincentivesreernote195872421981721657 SouthernCrossAustereoAnnualReport20136117.BorrowingsaTotalinterest-bearingliabilitiesCurrentborrowingsConsolidated20130002012000SecuredBankacilitiesb1900016000Leaseliabilitiesb194228Totalsecuredcurrentinterest-bearingliabilities1919416228Non-currentborrowingsConsolidated20130002012000SecuredBankacilitiesb684000703000Borrowingcosts790012414Leaseliabilitiesb75202Totalsecurednon-currentinterest-bearingliabilities676175690788Totalcurrentandnon-currentborrowings695369707016bBankfacilitiesandassetspledgedassecuritySouthernCrossAustereoPtyLtdSCAPLenteredintoanew765millionbankacilityon25March2011.Thisacilityconsistedoa725milliontermacilitymaturingon26March2015withmultiplerepaymentstotalling50millionbetweenJune2012andmaturitya30millionworkingcapitalacilityanda10millionworkingcapitalacilityorbankguaranteesleasescreditcardsmerchantacilities.22millionhasbeenrepaidto30June2013andthe30millionworkingcapitalacilityremainsundrawnat30June2013.ThebanktermacilitiesoSCAPLaresecuredbyaxedandfoatingchargeovertheassetsandundertakingsoSCAPLanditswholly-ownedsubsidiariesandalsobyamortgageoversharesinSCAPL.Theseacilitiesmatureon26March2015andhaveanaveragevariableinterestrateo5.4420126.26.TheseacilitiesaredenominatedinAustraliandollars.Therearecertainnancialandnon-nancialcovenantswhicharerequiredtobemetbysubsidiariesintheGroup.OneothesecovenantsisanundertakingthatthesubsidiaryisincompliancewiththerequirementsotheacilitybeoreanyamountmaybedistributedtothebenetotheultimateparententitySouthernCrossMediaGroupLimited.Therstcovenanttestingdatewasat31December2011withtestingdatesallingat30Juneand31Decembereachyearuntiltheacilitymaturitydate.Sinceinceptionthecovenanttestinghasbeensatisactorilymetateachtestingdate.Leaseliabilitiesareeectivelysecuredastherightstotheleasedassetsrecognisedinthenancialstatementsreverttothelessorintheeventodeault. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport20136217.BorrowingcontinuedbBankfacilitiesandassetspledgedassecuritycontinuedThecarryingamountsoassetspledgedassecuritybySCAPLorcurrentandnon-currentborrowingsareSCAPL20130002012000CurrentassetsFloatingchargeCashandcashequivalents9649890023Receivables129034131914Totalcurrentassetspledgedassecurity225532221937Non-currentassetsFloatingchargeReceivables62215796Investmentsaccountedorusingtheequitymethod1367710581Otherfnancialassets110141Propertyplantandequipment170595172517Intangibleassets20408082046816Totalnon-currentassetspledgedassecurity22314112235851Totalassetspledgedassecurity24569432457788cFinancingarrangementsUnrestrictedaccesswasavailableatbalancedatetotheollowinglinesocreditConsolidated20130002012000Bankacilities703000719000Usedatbalancedate703000719000UnusedatbalancedateWorkingcapitalacility3000030000UsedatbalancedateUnusedatbalancedate3000030000Workingcapitalacilitybankguaranteesleasescreditcardsmerchantacilities1000010000Usedatbalancedate33403560Unusedatbalancedate66606440Totalfacilities743000759000Totalusedatbalancedate706340722560Totalunusedatbalancedate3666036440ThebankacilitiesortheGroupmatureon26March2015.TheGroupsbankacilitiesaredenominatedinAustraliandollarsasat30June2013and30June2012. SouthernCrossAustereoAnnualReport20136318.DerivativeFinancialInstrumentsConsolidated20130002012000CurrentliabilitiesInterestrateswapcontractsa4207Totalcurrentliabilitiesderivativefnancialinstruments4207Non-currentliabilitiesInterestrateswapcontractsa1486324249Totalnon-currentliabilitiesderivativefnancialinstruments1486324249TheGroupispartytoderivativenancialinstrumentsinthenormalcourseobusinessinordertohedgeexposuretofuctuationsininterestratesinaccordancewiththeGroupsnancialriskmanagementpoliciesreertonote25.aInterestrateswapcontractsExternalborrowingsotheGroupcurrentlybearanaveragevariableinterestrateo5.4420126.26.Itispolicytoprotectpartotheloansromexposuretoincreasinginterestrates.AccordinglytheGrouphasenteredintointerestrateswapcontractsunderwhichitisobligedtoreceiveinterestatvariableratesandtopayinterestatxedrates.InAustraliainterestrateswapscurrentlyinplacecoverapproximately78201276otheloanprincipaloutstandinghoweverduetorollingcommencementdates50201249otheloanprincipalcurrentlyoutstandingiscoveredatyearend.Thecurrentxedinterestratesrangebetween5.06and6.122012rangebetween5.06and6.12andthevariablerateisdeterminedwithreerencetothe90-daybankbillswaprateBBSW.ThenotionalprincipalamountsandperiodsoexpiryotheinterestrateswapcontractsareasollowsConsolidated20130002012000Lessthan1year20000012years35000020000023years35000034yearsThecontractsrequiresettlementonetinterestreceivableorpayableandaretimedtocoincidewiththeapproximatedatesonwhichinterestispayableontheunderlyingdebt.Theseinterestrateswapsarecashfowhedgesastheysatisytherequirementsorhedgeaccounting.Anychangeinairvalueotheinterestrateswapsistakentothehedgereserveinequity. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport20136419.Non-CurrentLiabilitiesProvisionsConsolidated20130002012000Employeebenefts22392698Leaseincentives15511550Makegood34234654Leasestraightline33091997Onerouslease14891052212388Movementsincurrentandnon-currentprovisionsotherthanprovisionsoremployeebeneftsaresetoutbelowConsolidated20130002012000Balanceatthebeginningothefnancialyear969010783Movementsintheyear14061093Balanceattheendothefnancialyear8284969020.ContributedEquityConsolidated20130002012000Ordinaryshares16868781686878Contributedequity16868781686878Consolidated20130002012000Onissueatthebeginningothefnancialyear16868781688149Buybackocompanyshares1271Onissueattheendothefnancialyear16868781686878Consolidated20132012NumberofsecuritiesOnissueatthebeginningothefnancialyear704594705712Issuingsharesoremployeeshareentitlements26454Buybackocompanyshares1172Onissueattheendothefnancialyear704858704594 SouthernCrossAustereoAnnualReport201365aSecuritiesonissueOrdinarysharesinSouthernCrossMediaGroupLimitedOrdinarysharesentitletheholdertoparticipateindistributionsandtheproceedsonwindingupotheCompanyinproportiontothenumberoandamountspaidonthesharesheld.Onashowohandseachshareholderpresentinpersonandeachotherpersonpresentasaproxyhasonevoteanduponapolleachshareisentitledtoonevote.bDividendreinvestmentplanDRPOn3September2010theGroupannouncedthattheDRPwasreopened.UndertheDRPshareholdersmayelecttohaveallorpartotheirdividendentitlementssatisedbytheissueonewsharesratherthanbeingpaidincash.SharesareissuedundertheDRPattheweightedaveragemarketpricecalculatedoverapricingperiod.Adiscountonotmorethan10asdeterminedbythedirectorscanbeappliedtotheDRPprice.Nodiscounthasbeenappliedtodate.cEmployeeshareentitlementsIn2010theCompanyintroducedaLong-TermIncentivePlanLTIPoritsseniorexecutives.Inormationrelatingtotheemployeeshareentitlementsincludingdetailsosharesissuedundertheschemeissetoutinnote27.dSharebuybackOn24November2011theCompanyannounceditwouldconductasharebuybackbetween9December2011and30June2012toeectivelymanagecapitalorthebenetoshareholders.Duringthesharebuybackperiodatotalo1117995shareswereboughtbackatanaveragepriceo1.0824withpricesrangingrom1.0646to1.0900.Thetotalvalueosharesboughtbackwas1270687.eCapitalriskmanagementTheGroupsobjectiveswhenmanagingcapitalaretosaeguardtheGroupsabilitytocontinueasagoingconcernsothatitcancontinuetoprovidereturnsorshareholdersandbenetsorotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostocapital.InordertomaintainoradjustthecapitalstructuretheGroupmayadjusttheamountodividendspaidtoshareholdersreturncapitaltoshareholdersissuenewsharesbuybackexistingsharesorsellassetstoreducedebt.21.ReservesandOtherEquityTransactionsaReservesConsolidated20130002012000BalanceofreservesShare-basedpaymentsreservei23241193Hedgereserveii1126513529894112336iShare-basedpaymentsreserveBalanceatthebeginningothenancialyear1193404Employeeshareentitlement1131789Balanceattheendothenancialyear23241193iiHedgereserveBalanceatthebeginningothenancialyear13529Recognitionohedgereservenetotax8871Fairvaluemovementininterestrateswapsnetotax22644658Balanceattheendothenancialyear1126513529NatureandpurposeofreservesiShare-basedpaymentsreserveTheshare-basedpaymentsreserveisusedtorecognisetheairvalueouturepotentialsharestobeissuedtoemployeesornoconsiderationinrespectiveoperormancerightsoeredundertheLong-TermIncentivePlan.Duringtheyear264076201254258rightshavevestedand292112420121883328shareshavebeengranted.Inthecurrentyear11320002012789000hasbeenrecognisedasanexpenseinthecurrentyearprotorlossastheairvalueopotentialsharestobeissued.Reertonote27orurtherinormationonthecurrentLong-TermIncentivePlan.iiHedgereserveThehedgingreserveisusedtorecordgainsorlossesonahedginginstrumentinacashfowhedgethatarerecognisedinothercomprehensiveincomeasdescribedinnote1bbv.Amountsarereclassiedtoprotorlosswhentheassociatedhedgedtransactionaectsprotorloss. SouthernCrossAustereoAnnualReport201366NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE201321.ReservesandOtherEquityTransactionscontinuedbOtherequitytransactionsConsolidated20130002012000OtherequitytransactionsReverseacquisition7740677406On23November2005inconnectionwiththeinitialpublicoeringotheGrouptheCompanybecamethelegalowneroalltheissuedsharesoSouthernCrossMediaAustraliaHoldingPtyLimitedSCMAHL.SCMAHLwastheholdingcompanyortheSouthernCrossMediagroupocompaniesoperatingatthattimecommercialradiobroadcastingstationsthroughoutAustralia.Assetoutinnote1binaccordancewiththerequirementsoAASB3BusinessCombinationsthistransactionwasaccountedorasareverseacquisition.SCMAHLwasthedeemedaccountingacquirerotheGroupandtheCompany.UnderthetermsothearrangementwiththevendortheCompanywasrequiredtopay77.4millionorthetranserotheshares.22.AccumulatedLossesConsolidated20130002012000Balanceatthebeginningothefnancialyear63064101683Restatementocomparativesmovementinassociates778Proftattributabletosecurityholders9611195022Dividendsprovidedororpaid6696256403Balanceattheendothefnancialyear346936306423.EarningsperShareConsolidated2013Cents2012CentsaBasicearningspershareFromcontinuingoperationsattributabletoshareholders13.6413.48Totalbasicearningspershareattributabletoshareholders13.6413.48bDilutedearningspershareFromcontinuingoperationsattributabletoshareholders13.5913.45Totaldilutedearningspershareattributabletoshareholders13.5913.45cReconciliationofearningsusedincalculatingbasicanddilutedearningspershareConsolidated20130002012000BasicanddilutedearningspershareProftattributabletoshareholdersFromcontinuingoperations96111950229611195022dWeightedaveragenumberofsharesusedasthedenominatorConsolidated2013Number2012NumberWeightedaveragenumberosharesusedasthedenominatorincalculatingbasicearningspershare704825243705137886Adjustmentorsharesdeemedtobeissuedatnilconsiderationinrespectoemployeeshareentitlements24172051186101Weightedaveragenumberoordinarysharesandpotentialordinarysharesusedasthedenominatorincalculatingdilutedearningspershare707242448706323987 SouthernCrossAustereoAnnualReport20136724.ReconciliationoProtaterIncomeTaxtoNetCashInfowromOperatingActivitiesConsolidated20130002012000Protaterincometax9611195022Impairmentoinvestmentsandnon-currentassets59Depreciationandamortisation2647630523Lossprotonsaleosubsidary12485528Shareoassociatesloss668665Non-cashrevenue1790Dividendsreceivedrominvestments92Interestexpenseandotherborrowingcostsincludedinnancingactivities5497771699Sharebasedpayments1131788ChangeinassetsandliabilitiesDecreaseinreceivables210510973Decreaseincreaseindeerredtaxes913233929Decreaseinpayables97668920Decreaseincreaseinprovisionorincometax1072041973Decreaseincreaseinprovisions259850Netcashinfowsromoperatingactivities15324120933925.FinancialRiskManagementTheGroupsactivitiesexposeittoavarietyonancialrisksmarketriskairvalueinterestrateriskcreditriskliquidityriskandcashfowinterestraterisk.TheGroupsoverallriskmanagementprogramocusesontheunpredictabilityonancialmarketsandseekstominimisepotentialadverseeectsonthenancialperormanceotheGroup.TheGroupusesderivativenancialinstrumentssuchasinterestrateswapstohedgecertainriskexposures.TheRiskManagementPolicyandFrameworkiscarriedoutbymanagementunderpoliciesapprovedbytheBoard.SeniormanagementotheGroupidentiyquantiyandqualiynancialrisksaspartodevelopingandimplementingtheriskmanagementprocess.TheRiskManagementPolicyandFrameworkisawrittendocumentapprovedbytheBoardthatoutlinesthenancialriskmanagementprocesstobeadoptedbymanagement.SpecicnancialrisksthathavebeenidentiedbytheGroupareaMarketriskMarketriskistheexposuretoadversechangesinthevalueotradingportoliosasaresultochangesinmarketpricesorvolatilityiCashfowandairvalueriskchangesininterestrates.TheGroupsinterestrateriskarisesromlong-termborrowingswhicharetakenoutatvariableinterestratesandthereoreexposetheGrouptoacashfowrisk.TheGroupdoesnothaveaormalpolicytoxratesonitsborrowingsbutmanagesitscashfowinterestrateriskbyusingvariabletoxedinterestrateswaps.Suchinterestrateswapshavetheeconomiceectoconvertingborrowingsromvariableratestoxedrates.GenerallytheGroupraiseslong-termborrowingsatvariableratesandswapsthemintoxedratesthatarelowerthanthoseavailableitheGroupborrowedatxedratesdirectly.UndertheinterestrateswapstheGroupagreeswithotherpartiestoexchangeatspeciedintervalsmainlyquarterlythedierencebetweenxedcontractratesandvariablerateinterestamountscalculatedbyreerencetotheagreednotionalprincipalamounts.Reertonote18orurtherdisclosureinrelationtotheseinterestrateswapsandtheexposuretounhedgedborrowings.Inassessinginterestrateriskmanagementhasassumeda-25basispointsmovement201225basispointsintherelevantinterestratesat30June2013ornancialassetsandliabilitiesdenominatedinAustralianDollarsAUD.TheollowingtableillustratestheimpactonprotorlosswithnoimpactdirectlyonequityortheGroup. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport20136825.FinancialRiskManagementcontinuedConsolidatedAUDexposuresCarryingvalueImpactonpost-taxproftsIncreasedecrease30June2013-25basispointsImpactonreservesIncreasedecrease30June2013-25basispoints30June201300030June2012000000000000000FinancialassetsCashatbank10290697175257257Interestrateswaps190702424913871392Borrowings703000719000ConsolidatedAUDexposuresCarryingvalueImpactonpost-taxproftsIncreasedecrease30June2012-25basispointsImpactonreservesIncreasedecrease30June2012-25basispoints30June201300030June2012000000000000000FinancialassetsCashatbank10290697175243243Interestrateswaps190702424920592069Borrowings703000719000FordetailsotheinterestrateriskexposuresandtheGroupsinterestrateswapsreertonote18.bCreditriskCreditriskistheriskoacounterpartyailingtocompleteitscontractualobligationswhentheyalldue.TheGrouphaspoliciesinplacetoensurethatcashdepositsareappropriatelyspreadbetweencounterpartieswithacceptablecreditratings.Potentialareasocreditriskconsistocashandcashequivalentsderivativefnancialinstrumentsanddepositswithbanksandfnancialinstitutionsaswellascreditexposurestotradeandotherreceivables.TheGrouplimitsitsexposureinrelationtocashbalancesbyonlydealingwithwellestablishedfnancialinstitutionsohighqualitycreditstandingandinvestingininvestmentgradecommercialpaper.TheGrouponlyacceptsindependentlyratedpartieswithminimumratings.Theboardromtimetotimesetsexposurelimitstofnancialinstitutionsandthesearemonitoredonanongoingbasis.AgeinganalysisofassetspastduebutnotimpairedandimpairedassetsThetablesbelowsummarisetheaginganalysisoassetspastduebutnotimpairedandimpairedassetsasat30June.ConsolidatedAsat30June2013Current030days000Pastdue3060days000Pastdue6090days000Pastdue90days000Total000Tradereceivables627205327825044622123124Provisionordoubtuldebts601601ConsolidatedAsat30June2012Current030days000Pastdue3060days000Pastdue6090days000Pastdue90days000Total000Tradereceivables642825129035583891123021Provisionordoubtuldebts445338916821556DuetothelargenumberolowvaluereceivablesintheGroupentitiesthereisnosignifcantconcentrationocreditriskbycounterpartyorindustrygrouping. SouthernCrossAustereoAnnualReport201369cLiquidityriskLiquidityriskistheriskoanentityencounteringdicultyinmeetingobligationsassociatedwithnancialliabilities.Prudentliquidityriskmanagementimpliesmaintainingsucientcashtheavailabilityoundingthroughanadequateamountocommittedcreditacilitiesandtheabilitytocloseoutmarketpositions.TheGroupandCompanyhaveaprudentliquiditymanagementpolicywhichmanagesliquidityriskbymonitoringthestabilityoundingsurpluscashornearcashassetsanticipatedcashinandoutfowsandexposuretoconnectedparties.UndiscounteduturecashfowsThetablesbelowsummarisethematurityproleothenancialliabilitiesasat30Junebasedoncontractualundiscountedrepaymentobligations.Repaymentswhicharesubjecttonoticearetreatedasinoticeweregivenimmediately.ConsolidatedAsat30June2013Lessthan1year00012years00023years00035years000Greaterthan5years000Leaseliabilities190432934Borrowingsprincipal19000684000Interestcashfows3938551634Derivativenancialinstruments112899042Payables105535calculatedusingaweightedaveragevariableinterestrateConsolidatedAsat30June2012Lessthan1year00012years00023years00035years000Greaterthan5years000Leaseliabilities175220287Borrowingsprincipal1600019000684000Interestcashfows487434613355643Derivativenancialinstruments685465144608Payables118244calculatedusingaweightedaveragevariableinterestrate NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport20137025.FinancialRiskManagementcontinueddFairvalueestimationTheairvalueonancialassetsandnancialliabilitiesmustbeestimatedorrecognitionandmeasurementorordisclosurepurposes.Aso1July2009theGrouphasadoptedtheamendmenttoAASB7FinancialInstrumentsDisclosureswhichrequiresdisclosureoairvaluemeasurementsbylevelotheollowingairvaluemeasurementhierarchyiLevel1quotedpricesunadjustedinactivemarketsoridenticalassetsorliabilitiesiiLevel2inputsotherthanquotedpricesincludedwithinlevel1thatareobservableortheassetorliabilityeitherdirectlyaspricesorindirectlyderivedrompricesandiiiLevel3inputsortheassetorliabilitythatarenotbasedonobservablemarketdataunobservableinputs.TheollowingtablespresenttheGroupsassetsandliabilitiesmeasuredandrecognisedatairvalueat30June2013and30June2012ConsolidatedAsat30June2013Level1000Level2000Level3000Total000LiabilitiesDerivativesusedorhedging1907019070Totalliabilities1907019070ConsolidatedAsat30June2012Level1000Level2000Level3000Total000LiabilitiesDerivativesusedorhedging2424924249Totalliabilities2424924249Theairvalueonancialinstrumentsthatarenottradedinanactivemarketisdeterminedusingvaluationtechniques.TheGroupusesavarietyomethodsandmakesassumptionsthatarebasedonmarketconditionsexistingattheendoeachreportingperiod.Theairvalueointerestrateswapsarecalculatedasthepresentvalueotheestimateduturecashfowsandareincludedinlevel2underderivativenancialinstruments.26.ParentEntityFinancialInformationaSummaryfnancialinormationTheollowingaggregateamountsaredisclosedinrespectotheparententitySCMGLSCMGLStatementofFinancialPosition20130002012000Currentassets67527613Non-currentassets18482171817868Totalassets18549691825481Currentliabilities5981970471Non-currentliabilities10915962873Totalliabilities168978133344Netassets16859911692137Issuedcapital15892901589290Reserves23241192Retainedprots94377101655Totalequity16859911692137Protortheyear5411249972Totalcomprehensiveincome5411249972 SouthernCrossAustereoAnnualReport201371bGuaranteesenteredintobytheparententity20130002012000CarryingamountincludedincurrentliabilitiesTheparententityhasnotprovidedanyfnancialguaranteesinrespectobankoverdratsandloansosubsidiariesasat30June201330June2012nil.Theparententityhasnotgivenanyunsecuredguaranteesat30June201330June2012nil.cContingentliabilitiesoftheparententityTheparententitydidnothaveanycontingentliabilitiesasat30June201330June2012nil.dContractualcommitmentsfortheacquisitionofpropertyplantorequipmentAsat30June2013theparententityhadnocontractualcommitments30June2012nil.27.Share-BasedPaymentsInJune2010theBoardapprovedtheintroductionoanexecutivelong-termincentiveplantocommenceon1July2010whichprovidedortheCEOandseniorexecutivestoreceivegrantsoperormancerightsoverordinarysharesornilconsideration.Thegrantorightsareexercisablesubjecttoathreeorouryearperormanceperiodandthesatisactionosetperormancecriteriaduringtheperiod.TheperormancecriteriatakeintoaccountsharepriceappreciationplusreinvesteddividendsexpressedasapercentageoinvestmentandadjustedorchangesintheCompanyscapitalstructure.InorderorperormancerightstovestandconverttosharestheCompanysTSRovertheperormanceperiodmustbeatorabovethe51stpercentileagainstacomparativegrouposelectedmediaandrelatedlistedcompanies.Betweenthe51stand75thpercentileperormancerightswillvestonalinearbasisrom50oawardto100oawardconsequently100operormancerightswillvestatthe75thpercentileorhigher.Forthethreeyearperormanceperiodperormancerightsvestprogressivelyoverthethreeyearperormanceperiodwith13rdvestingatyear113rdatyear2and13rdatyear3subjecttoperormancecriteriabeingmet.Fortheouryearperormanceperiodperormancerightsvestprogressivelyovertheouryearperormanceperiodwith13rdvestingatyear213rdatyear3and13rdatyear4ortheouryearperormanceperiodsubjecttoperormancecriteriabeingmet.TheBoardhasthediscretiontoeitherpurchasesharesonmarketortoissuenewsharesinrespectovestingperormancerights.TodatetheBoardhaselectedtoissuenewsharesorvestingperormancerights.TheollowingreconcilesthesharerightsoutstandingatthebeginningandendotheyearNumberofrights20132012Balanceatbeginningotheyear26159081100473Grantedduringtheyear29211241883328Exercisedduringtheyear26407654258Foreitedduringtheyear289469313635Balanceatendoyear49834872615908ExercisableatendotheyearRightswerepricedusingaMonteCarlosimulation-basedvaluationmodelusingtheollowinginputs2012Tranche12012Tranche22012Tranche32012Tranche4Grantdateshareprice1.051.051.051.05Fairvalueatgrantdate0.400.490.530.54ExercisepriceNilNilNilNilDividendyield9.769.769.769.76Riskreeinterestrate3.032.953.053.16SharepriceandTSRvolatility38.7638.7638.7638.76PeergroupTSRvolatilitynanananaPeergroupTSRspreadnanananaCorrelationnanananaDuetochangesintheMonteCarlosimulation-basedvaluationmodelTSRvolatilityandspreadisnowassessedonanindividualcomparatorcompanybasisratherapeergroupcomparatorbasis. NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013SouthernCrossAustereoAnnualReport20137227.Share-BasedPaymentscontinued2011Tranche12011Tranche22011Tranche32011Tranche4Grantdateshareprice1.051.051.051.05Fairvalueatgrantdate0.510.620.670.68ExercisepriceNilNilNilNilDividendyield11.8211.8211.8211.82Riskfreeinterestrate4.544.424.474.67SharepriceandTSRvolatility54.3654.3654.3654.36PeergroupTSRvolatility17.2417.2417.2417.24PeergroupTSRspread30.8830.8830.8830.88Correlation44.2144.2144.2144.212010Tranche12010Tranche22010Tranche32010Tranche4Grantdateshareprice1.661.661.661.66Fairvalueatgrantdate0.860.880.900.90ExercisepriceNilNilNilNilDividendyield3.493.493.493.49Riskfreeinterestrate4.734.784.774.90SharepriceandTSRvolatility47.6247.6247.6247.62PeergroupTSRvolatility22.1522.1522.1522.15PeergroupTSRspread34.9034.9034.9034.90Correlation40.4240.4240.4240.42ThefollowingoutlinessharerightsgrantedtoKeyManagementPersonnel2013BalanceatstartofyearNo.GrantedascompensationNo.ForfeitedNo.VestedNo.BalanceatendofyearNo.DirectorsMaxMoore-WiltonLeonPasternakChrisdeBoerTonyBellMichaelCarapietPeterHarvieMarinaDarlingExecutivesRhysHolleran925613674203315501010131467253StephenKelly48753242846414873557722709539GuyDobson288944288944CraigBruce21107226779081691397171AndreaIngham192629192629162421718520302619761587353055536At1July20132010Tranche3ofperformancerightsvestedto76.2and2011Tranche2and2012Tranche1ofperformancerightsdidnotvest. SouthernCrossAustereoAnnualReport2013732012BalanceatstartofyearNo.GrantedascompensationNo.ForfeitedNo.VestedNo.BalanceatendofyearNo.DirectorsMaxMoore-WiltonLeonPasternakChrisdeBoerTonyBellMichaelCarapietPeterHarvieMarinaDarlingExecutivesRhysHolleran391796533817925613StephenKelly2273283377152325354258487532JeremySimpson89553183023272576GuyDobsonCraigBruce211072211072CathyThomas70867712656272325354258189679328.RelatedPartyDisclosuresBalancesandtransactionsbetweentheCompanyanditssubsidiarieswhicharerelatedpartiesotheCompanyhavebeeneliminatedonconsolidationandarenotdisclosedinthisnote.DetailsotransactionsbetweentheGroupandotherrelatedpartiesaredisclosedbelow.KeyManagementPersonnelTheollowingpersonswereKeyManagementPersonnelotheCompanyortheGroupduringthewholeotheyearunlessotherwisestatedanduptothedateothisreportDirectorsMaxMoore-WiltonChairmanLeonPasternakChrisdeBoerTonyBellMichaelCarapietPeterHarvieMarinaDarlingExecutivesRhysHolleranCEOStephenKellyCFOGuyDobsonChieContentOfcerCraigBruceHeadoContentCathyThomasNationalSalesDirectorceased1February2013AndreaInghamNationalSalesDirectorappointed1February2013DuringtheyearnoKeyManagementPersonnelotheCompanyortheGrouphasreceivedorbecomeentitledtoreceiveanybeneftbecauseoacontractmadebytheGroupwithaKeyManagementPersonnelorwithafrmowhichaKeyManagementPersonnelisamemberorwithanentityinwhichtheKeyManagementPersonnelhasasubstantialinterestexceptontermssetoutinthegoverningdocumentsotheGrouporasdisclosedinthisfnancialreport. SouthernCrossAustereoAnnualReport201374NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE201328.RelatedPartyDisclosurescontinuedaKeyManagementPersonnelcompensationTheaggregatecompensationoKeyManagementPersonnelotheGroupissetoutbelowConsolidated20130002012000Short-termemployeebenefts46317575238856Post-employmentbenefts146518174831Otherlong-termbenefts275601157613Terminationpayments776538Share-basedpayments72215055503657760266902874bKeyManagementPersonnelequityholdingsThenumberoordinarysharesintheCompanyheldduringthefnancialyearbyKeyManagementPersonnelotheCompanyandGroupincludingtheirpersonallyrelatedpartiesaresetoutbelow2013BalanceatstartofyearChangesduringyearBalanceatendofyearDirectorsMaxMoore-Wilton18571438571431000000LeonPasternak10642161064216ChrisdeBoer148571148571TonyBell16011812649172767MichaelCarapiet13479001347900PeterHarvieMarinaDarling100000100000ExecutivesRhysHolleran25589999156355055StephenKelly8444857722142170GuyDobsonCraigBruceCathyThomasAndreaIngham49182955876164330679 SouthernCrossAustereoAnnualReport2013752012BalanceatstartofyearChangesduringyearBalanceatendofyearDirectorsMaxMoore-Wilton18571431857143LeonPasternak9642161000001064216ChrisdeBoer148571148571TonyBell1502769842160118MichaelCarapiet11479002000001347900PeterHarvieMarinaDarlingExecutivesRhysHolleran255899255899StephenKelly8444884448JeremySimpsonGuyDobsonCraigBruceCathyThomas45240053942904918295PerormancerightsissuedtoKeyManagementPersonnelhavebeendisclosedinnote27.cLoanstoKeyManagementPersonnelTherewerenoloansmadetoKeyManagementPersonnel2012nil.dOthertransactionswithKeyManagementPersonnelDuringtheyeartherewerenoothertransactionswithKeyManagementPersonnel.eSubsidiariesandassociatesOwnershipinterestsinsubsidiariesaresetoutinnote14.Detailsointerestsinassociatesanddistributionsreceivedromassociatesaredisclosedinnote9.Detailsoloansdueromassociatesaredisclosedinnote8.fOtherrelatedpartytransactionsDuringtheyearMacquariereceivedorwasentitledtoreceive17053821201214361112asdividendsonsecuritiesheld.At30June2013theGrouphadundstotalling40780920127151333ondepositwithMacquarie.TheGroupearnsinterestondepositsatcommercialrates.InterestincomeromdepositswithMacquarieincludedinthedeterminationothenetresultromordinaryactivitiesortheyearortheGroupwas1101392012248913.29.SegmentInformationaDescriptionofsegmentsTheGrouphasadoptedAASB8OperatingSegmentswitheectrom1July2009.AASB8requiresoperatingsegmentstobeidentifedonthebasisointernalreportsaboutcomponentsotheGroupthatareregularlyreviewedbythechieoperatingdecisionmakerinordertoallocateresourcestothesegmentsandtoassesstheirperormance.ManagementhasdeterminedoperatingsegmentsbasedontheinormationreportedtotheGroupCEOandtheCompanyBoardoDirectors.ManagementhasdeterminedthattheGrouphastwooperatingsegmentsbeingtheregionalreetoaircommercialradioandtelevisionbroadcastingsegmentandthemetropolitanreetoairradiobroadcastingsegment.AsthesegmentshavesimilareconomiccharacteristicsthetwooperatingsegmentshavebeenaggregatedaspermittedunderAASB8toormonereportablesegmentbeingreetoairbroadcasting.FreetoairbroadcastingFreetoairbroadcastingconsistsothecommercialradioandtelevisionbroadcastlicencesheldthroughoutAustralia.WithreetoairbroadcastingastheonlyremainingsegmentinboththecurrentandpriorfnancialyearstheinormationrequiredtobedisclosedperAASB8iscontainedontheaceotheStatementoComprehensiveIncomeandtheStatementoFinancialPosition. SouthernCrossAustereoAnnualReport20137630.CommitmentsConsolidated20130002012000CapitalcommitmentsCommitmentsortheacquisitionoplantandequipmentcontractedoratthereportingdatebutnotrecognisedasliabilitiesarepayableasollowsWithinoneyear22591440Laterthanoneyearbutnotlaterthan5years22591440OperatingleasesCommitmentsorminimumleasepaymentsinrelationtonon-cancellableoperatingleasesarepayableasollowsWithinoneyear2255621092Laterthanoneyearbutnotlaterthan5years6103259498Laterthan5years5843835729142026116319FinanceleasepaymentcommitmentsFinanceleasecommitmentsarepayableasollowsWithinoneyear205216Laterthanoneyearbutnotlaterthan5years79234Greaterthanfveyears21284471LessFutureleasefnancecharges1541269430LeaseliabilitiesprovidedorinthefnancialstatementsCurrent194228Non-current75202Totalleaseliability26943031.EventsOccurringaterBalanceSheetDateSincetheendothefnancialyeartheGrouphasreachedanagreementwithNetworkTENregardingthesupplyotelevisionprogrammingorthenextthreeyears.NomattersorcircumstanceshavearisensincetheendotheyearthathavesignifcantlyaectedormaysignifcantlyaecttheoperationsotheGrouptheresultsotheseoperationsinuturefnancialyearsorthestateoaairsothoseentitiesinperiodssubsequenttotheyearended30June2013.NOTESTOTHEFINANCIALSTATEMENTSFORYEARENDED30JUNE2013 SouthernCrossAustereoAnnualReport201377DIRECTORSDECLARATIONFORYEARENDED30JUNE2013TheDirectorsotheCompanydeclarethat1.IntheDirectorsopiniontherearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable2.IntheDirectorsopinionthefnancialstatementsandnotesassetoutonpages37to76areinaccordancewiththeCorporationsAct2001includingcompliancewithaccountingstandardsandgivingatrueandairviewothefnancialpositionandperormanceothecompanyandtheconsolidatedentityand3.TheDirectorshavebeengiventhedeclarationsrequiredbysection295AotheCorporationsAct2001.4.Note1aconfrmsthatthefnancialstatementsalsocomplywithInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoard.SignedinaccordancewitharesolutionotheDirectorsmadepursuanttosection2955otheCorporationsAct.OnbehalotheDirectorsMaxMoore-WiltonLeonPasternakChairmanDeputyChairmanSouthernCrossMediaGroupLimitedSouthernCrossMediaGroupLimitedSydneyAustraliaSydneyAustralia13August201313August2013 SouthernCrossAustereoAnnualReport201378INDEPENDENTAUDITORSREPORTTOTHEMEMBERSOFSOUTHERNCROSSMEDIAGROUPLIMITEDIndependentauditorsreporttothemembersofSouthernCrossMediaGroupLimitedReportonthefinancialreportWehaveauditedtheaccompanyingfinancialreportofSouthernCrossMediaGroupLimitedthecompanywhichcomprisesthestatementoffinancialpositionasat30June2013thestatementofcomprehensiveincomestatementofchangesinequityandstatementofcashflowsfortheyearendedonthatdateasummaryofsignificantaccountingpoliciesotherexplanatorynotesandthedirectorsdeclarationforSouthernCrossAustereotheconsolidatedentity.Theconsolidatedentitycomprisesthecompanyandtheentitiesitcontrolledatyearsendorfromtimetotimeduringthefinancialyear.DirectorsresponsibilityforthefinancialreportThedirectorsofthecompanyareresponsibleforthepreparationofthefinancialreportthatgivesatrueandfairviewinaccordancewithAustralianAccountingStandardsandtheCorporationsAct2001andforsuchinternalcontrolasthedirectorsdetermineisnecessarytoenablethepreparationofthefinancialreportthatisfreefrommaterialmisstatementwhetherduetofraudorerror.InNote1thedirectorsalsostateinaccordancewithAccountingStandardAASB101PresentationofFinancialStatementsthatthefinancialstatementscomplywithInternationalFinancialReportingStandards.AuditorsresponsibilityOurresponsibilityistoexpressanopiniononthefinancialreportbasedonouraudit.WeconductedourauditinaccordancewithAustralianAuditingStandards.Thosestandardsrequirethatwecomplywithrelevantethicalrequirementsrelatingtoauditengagementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialreport.Theproceduresselecteddependontheauditorsjudgementincludingtheassessmentoftherisksofmaterialmisstatementofthefinancialreportwhetherduetofraudorerror.Inmakingthoseriskassessmentstheauditorconsidersinternalcontrolrelevanttotheconsolidatedentityspreparationandfairpresentationofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstancesbutnotforthepurposeofexpressinganopinionontheeffectivenessoftheentitysinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectorsaswellasevaluatingtheoverallpresentationofthefinancialreport.OurproceduresincludereadingtheotherinformationintheAnnualReporttodeterminewhetheritcontainsanymaterialinconsistencieswiththefinancialreport.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinions.IndependenceInconductingourauditwehavecompliedwiththeindependencerequirementsoftheCorporationsAct2001.PricewaterhouseCoopersABN52780433757FreshwaterPlace2SouthbankBoulevardSOUTHBANKVIC3006GPOBox1331MELBOURNEVIC3001T61386031000F61386031999www.pwc.com.auLiabilitylimitedbyaschemeapprovedunderProfessionalStandardsLegislation. SouthernCrossAustereoAnnualReport201379AuditorsopinionInouropinionathefinancialreportofSouthernCrossMediaGroupLimitedisinaccordancewiththeCorporationsAct2001includingigivingatrueandfairviewoftheconsolidatedentitysfinancialpositionasat30June2013andofitsperformancefortheyearendedonthatdateandiicomplyingwithAustralianAccountingStandardsincludingtheAustralianAccountingInterpretationsandtheCorporationsRegulations2001andbthefinancialreportandnotesalsocomplywithInternationalFinancialReportingStandardsasdisclosedinNote1.ReportontheRemunerationReportWehaveauditedtheremunerationreportincludedinpages29to35ofthedirectorsreportfortheyearended30June2013.Thedirectorsofthecompanyareresponsibleforthepreparationandpresentationoftheremunerationreportinaccordancewithsection300AoftheCorporationsAct2001.OurresponsibilityistoexpressanopinionontheremunerationreportbasedonourauditconductedinaccordancewithAustralianAuditingStandards.AuditorsopinionInouropiniontheremunerationreportofSouthernCrossMediaGroupLimitedfortheyearended30June2013complieswithsection300AoftheCorporationsAct2001.MattersrelatingtotheelectronicpresentationoftheauditedfinancialreportThisauditorsreportrelatestothefinancialreportandremunerationreportofSouthernCrossMediaGroupLimitedthecompanyfortheyearended30June2013includedonSouthernCrossMediaGroupLimitedswebsite.ThecompanysdirectorsareresponsiblefortheintegrityofSouthernCrossMediaGroupLimitedswebsite.Wehavenotbeenengagedtoreportontheintegrityofthiswebsite.Theauditorsreportrefersonlytothefinancialreportandremunerationreportnamedabove.Itdoesnotprovideanopiniononanyotherinformationwhichmayhavebeenhyperlinkedtofromthefinancialreportortheremunerationreport.Ifusersofthisreportareconcernedwiththeinherentrisksarisingfromelectronicdatacommunicationstheyareadvisedtorefertothehardcopyoftheauditedfinancialreportandremunerationreporttoconfirmtheinformationincludedintheauditedfinancialreportandremunerationreportpresentedonthiswebsite.PricewaterhouseCoopersChrisDoddMelbournePartner13August2013 SouthernCrossAustereoAnnualReport201380Thecompanyonlyhasoneclassosharesullypaidordinarysharesthereoreallholderslistedholdullypaidordinarysharesandeachholderhasthesamevotingrights.Therearenounlistedsecuritiesandthereiscurrentlynoon-marketbuyback.Twentylargestshareholdersat20August2013FullypaidordinarysharesofissuedcapitalMacquarieDiversifedAssetAdvisoryPtyLtd17371925324.64HSBCCustodyNomineesAustraliaLimited10357622314.69JPMorganNomineesAustraliaLimited9760243613.84NationalNomineesLimited8814272512.50CiticorpNomineesPtyLimited7313739310.37BNPParibasNomsPtyLimited113063701.60JPMorganNomineesAustraliaLimited97799751.39AMPLieLimited89864371.27CladelaPtyLtd77956721.11HSBCCustodyNomineesAustraliaLimited62557200.89ArgoInvestmentsLimited59407840.84MacquarieCapitalGroupLimited57946530.82QICLimited46210350.66UCAGrowthFundLimited45000000.64BNPParibasNomineesPtyLimited40510430.57AvanteosInvestmentsLimited37528640.53CiticorpNomineesPtyLimited36019040.51RBCInvestorServicesAustraliaNomineesPtyLimited30574540.43CSFourthNomineesPtyLimited20438820.29MrNicholasMoore19757590.2861964158287.87Distributionoshareholdingsat20August2013RangeNo.ofshareholdersNo.ofshares1100083734707110015000195257735625001100001093858052410001100000148338051432100001andover1146523472115479705099800Holdinglessthanamarketableparcel39414355Substantialshareholdersat20August2013FullypaidordinarysharesMacquarieDiversifedAssetAdvisoryPtyLtd173719253HSBCCustodyNomineesAustraliaLimited103576223JPMorganNomineesAustraliaLimited97602436NationalNomineesLimited88142725CiticorpNomineesPtyLimited73137393536178030ADDITIONALSTOCKEXCHANGEINFORMATION CompanySecretaryMsLBolgerRegisteredOfceLevel2257ClarendonStreetSouthMelbourneVic3205ShareRegistryComputershareInvestorServicesPtyLimitedYarraFalls452JohnstonStreetAbbotsordVic3067CORPORATEDIRECTORYThecoverandeditorialsectionotheSouthernCrossAustereoAnnualReport2013isprintedonMonzaRecycledisCertifedCarbonNeutralbyTheCarbonReductionInstituteCRIinaccordancewiththeglobalGreenhouseProtcolandISO14040ramework.MonzaRecycledcontains55recycledfbreandisFSCMixCertifedwhichensuresthatallvirginpulpisderivedromwell-managedorestsandcontrolledsources.MonzaRecycledismanuacturedbyanISO14001certifedmill.ThefnancialsectionisprintedonReviveLaseris100RecycledandismanuacturedromFSCRecycledcertifedfbre.CertifedCarbonNeutralbytheDCCEEundertheNationalCarbonOsetStandardNCOSReviveLaseralsosupportsLandcareAustralia.MadeinAustraliabyanISO14001certifedmill.Nochlorinebleachingoccursintherecyclingprocess.SouthernCrossAustereoAnnualReport201381