Since his days of being the butt of Sam Newman jokes on The Footy Show, Craig Hutchison has emerged as one of Australia’s biggest media moguls with Sports Entertainment Group (ASX: SEG) expanding its footprint in Queensland through the acquisition of the 4KQ 693AM radio licence for $12 million.
Somewhat of an opportune pickup, SEG acquired the licence after orders were made by the Australian Communications and Media Authority (ACMA) for it to be sold by advertising company HT&E (ASX: HT1) which only gained it in the first place via their own all-inclusive acquisition of Grant Broadcasters in January 2022.
With SEG adding the licence for 693AM, which will be broadcast as SENQ 693AM, it takes their national radio distribution footprint to 35 stations across all capital cities and states with the core focus of sports and entertainment.
“We know Queenslanders love their sport. 693 SENQ will provide a unique offering and constant sporting content like never before as Queensland’s only dedicated sports station,” said SEG Managing Director, Craig Hutchison.
“We already have great momentum with ‘Breakfast with Pat & Heals’ and I look forward to announcing more Queensland specific content in the coming months. Our business model is sport, and parochial sport is at the heart of that.
“Queenslanders love their state and its teams and we are excited to play our role in amplifying that passion.”
SENQ will become the flagship station for SEG in Queensland and be complemented by its 6 other owned stations in the Sunshine State which focus on more localised content.
Total consideration for the 693AM acquisition will be $12 million cash which will be funded by a combination of $5m to be raised via an institutional Placement at $0.20 per share, and $7m via existing cash reserves and debt facilities.
Sports Entertainment Group, previously known as Crocmedia before listing on the ASX, expects earnings from SENQ to be incremental after its first 12 months on the air.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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