SEG strikes NZ$130m deal for MediaWorks, New Zealand’s #1 audio business
Sports Entertainment Group Limited (ASX: SEG) has entered into a binding share purchase agreement to acquire 100% of MediaWorks Topco Limited, New Zealand’s #1 audio business, for an enterprise value of NZ$130 million (approximately A$107.4 million) on a cash and debt free basis.
The transaction is expected to be materially accretive to SEG’s earnings per share, with 59% EPS accretion on a pre-synergies basis, assuming $11.7m is raised under the Placement and there is limited SPP participation. It creates a trans-Tasman audio, digital and entertainment group with combined weekly audiences exceeding 5 million listeners across both markets.
Completion is targeted for 1 October 2026, subject to customary conditions including New Zealand Overseas Investment Office approval. The deal marks SEG’s re-entry into the New Zealand market as a clear market leader rather than a challenger.
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Inside the numbers — an accretive, well-priced acquisition
The acquisition reflects a multiple of approximately 5.1x MediaWorks’ CY26 budgeted EBITDA of NZ$25.4 million, reducing to 4.2x on a post-synergies basis. SEG has identified approximately A$5 million of annual synergies from the combination.
On a proforma combined basis for the 12 months to 30 June 2026, the two businesses generated combined EBITDA of approximately A$36.1 million before synergies, on a pre-AASB16 basis, rising to approximately A$41.1 million after the identified synergies are realised, also on a pre-AASB16 basis.
MediaWorks reported FY26 (June year-end) revenue of A$131.2 million and EBITDA of A$18.1 million, with the company citing multiple levers for future growth across its radio and digital assets.
| Metric | Pre-Synergies | Post-Synergies |
|---|---|---|
| Acquisition multiple | ~5.1x | ~4.2x |
| Proforma combined EBITDA | ~A$36.1m | ~A$41.1m |
The purchase price is based on what SEG describes as a credible path for MediaWorks EBITDA to exceed NZ$38.0 million by FY30, supported by growth across its radio and digital platforms.
SEG’s record FY26 gives it firepower to expand
SEG launches into the acquisition off the back of record, though unaudited, FY26 results. The financial momentum provides a strong balance sheet foundation to support the transaction.
- Revenue of $152.8 million (+38% on FY25A)
- Normalised EBITDA of $18.0 million (+71% on FY25A)
- Normalised NPAT of $6.6 million; normalised EPS of 2.3 cents per share
- Year-end cash balance of $24 million; debt of $10 million
The strengthened balance sheet, with cash growing to $24 million at year end, underpins SEG’s ability to take on the transaction. All FY26 figures are unaudited.
The SEG FY26 earnings upgrade to $18 million underlying EBITDA, driven in part by FIFA World Cup outperformance and sustained Media segment growth, also confirmed net cash of at least $14 million at 30 June 2026, setting the balance sheet foundation that now underpins the MediaWorks funding structure.
CEO Commentary
“The acquisition of MediaWorks is a transformational step for SEG. It gives us immediate market leadership in New Zealand, a highly complementary content offering, and a genuine platform to extend our sport, digital and entertainment capability across the Tasman. We are impressed by the MediaWorks team and look forward to working with Wendy Palmer and her team as we bring the two businesses together,” said SEG Chief Executive Officer Craig Hutchison.
The SEG Board unanimously approved the acquisition and the equity raising.
Why New Zealand, and why MediaWorks
MediaWorks holds approximately 59% audience share in the 25–54 demographic. The existing management team, led by CEO Wendy Palmer, is expected to continue leading the New Zealand business following completion.
The Board outlined the following strategic rationale for the acquisition:
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Creation of a leading trans-Tasman audio platform, combining SEG’s Australian sports audio network with MediaWorks’ New Zealand radio business to reach a combined audience exceeding 5 million listeners.
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A market-leading re-entry into New Zealand, allowing SEG to return as the clear market leader rather than a challenger, underpinned by spectrum, talent and infrastructure. MediaWorks provides the spectrum, talent, and infrastructure that would be difficult and costly to replicate organically.
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Complementary content, with MediaWorks’ strength in music and entertainment radio complementing SEG’s strength in sports content, broadening audience and advertiser appeal.
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Digital growth through rova, MediaWorks’ proprietary digital audio platform generating approximately NZ$19.1 million revenue at a ~32% CAGR (FY24–26F), with more than 540,000 monthly active users and a roadmap to 800,000 by FY30.
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A platform to extend SEG’s sport, events and content offering into New Zealand, leveraging MediaWorks’ 2.4 million weekly listeners and advertiser base.
MediaWorks is described as a high-quality, cash-generative business, with EBITDA expected to grow over time supported by free cash conversion of more than 80% and modest ongoing capital expenditure requirements.
How the deal is funded
The acquisition will be funded through a combination of capital sources, each with distinct terms. The structure is designed to optimise EPS accretion while maintaining leverage under 2x.
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Existing cash reserves.
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A new A$87.6 million senior debt facility from the Commonwealth Bank of Australia (CBA), under a binding term sheet, with definitive documents to be put in place prior to completion.
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A Placement to raise up to approximately A$11.7 million, comprising approximately 42 million New Shares at A$0.28 per share.
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The Offer Price represents an 8.2% discount to the last traded price and a 14.6% discount to the 15-day VWAP.
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A subsequent Share Purchase Plan (SPP) to raise up to approximately A$2.0 million at the same A$0.28 issue price, with eligible shareholders able to apply for up to A$30,000 worth of New Shares. The SPP is not underwritten.
Proceeds from the Placement are intended to partially repay, or reduce the need to draw on, a bridging component of the CBA debt facility, while SPP proceeds are directed towards partially repaying the debt facility.
Leverage on completion is expected to be approximately 1.9x proforma FY26 EBITDA, including approximately $5.0 million of identifiable synergies, with a credible pathway to reduce net debt to EBITDA to approximately 1.2x within two years.
As a result of the acquisition and equity raising, SEG has terminated its on-market share buy-back program, which had been in operation since 24 March 2026, with immediate effect.
Key dates and what happens next
Completion of the acquisition, from vendors including Quadrant Private Equity, Barclay Nettlefold and John O’Neill, remains subject to customary conditions, including receipt of a direction order under section 88 of the Overseas Investment Act 2005 (NZ). SEG has pre-engaged the ASX and does not expect the change in scale to require shareholder approval under the ASX Listing Rules.
| Event | Date |
|---|---|
| Announcement of Placement results and trading halt lifted | Friday, 14 August 2026 |
| SPP opens | Friday, 21 August 2026 |
| SPP closes | Friday, 11 September 2026 |
| Completion of the Acquisition | Thursday, 1 October 2026 |
The indicative timetable remains subject to change. With binding agreements in place and a clear funding pathway outlined, investors have line of sight to a targeted completion of 1 October 2026, subject to the required regulatory approvals.
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