SEG completes NZ$130 million MediaWorks acquisition
Sports Entertainment Group Limited (ASX: SEG) formally completed its acquisition of MediaWorks Topco Limited on 1 October 2026, paying an enterprise value of NZ$130 million (approximately A$107.6 million) on a cash and debt free basis.
The transaction transforms SEG into a scaled, trans-Tasman media group, with a combined audience of more than 5 million listeners across Australia and New Zealand.
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Q1 FY27 trading momentum across both businesses
Both businesses recorded positive operating momentum through Q1 FY27 (July–September 2026). SEG’s Australian business reported its Q1 FY27 underlying EBITDA as forecasted to be up 10% on the prior corresponding period, driven by the Legends Game, NFL Melbourne Game, and AFL and NRL Finals.
MediaWorks’ last 12 months (LTM) EBITDA showed consistent monthly growth during Q1 FY27 and is now entering the business’ seasonally strongest quarter (October–December).
The table below presents the pro forma, unaudited September 2026 LTM EBITDA for the combined group, which stands at $42.9 million post synergies. This compares favourably to the previously announced $41.1 million figure to 30 June 2026.
| ($ million) | SEG Aus | MediaWorks | Group Total |
|---|---|---|---|
| LTM Underlying EBITDA (NZD) | – | 23.3 | – |
| 12-month Avg NZD/AUD Exchange Rate | – | 0.833 | – |
| LTM Underlying EBITDA (AUD) | 18.5 | 19.4 | 37.9 |
| Identified, yet to be implemented synergies | – | – | 5.0 |
| Underlying EBITDA – Post Synergies (AUD) | – | – | 42.9 |
Capital structure and the path to 1.2x leverage
Since announcing the acquisition, SEG has raised $15 million in new equity from a combination of existing, new institutional, and retail investors. As at 1 October 2026, pro forma net debt to LTM EBITDA including identified synergies stands at 1.84x on Day 1.
The oversubscribed placement, which closed above its initial A$11.7 million target at A$14.6 million, reflected institutional conviction in the deal thesis and contributed to the equity component of the NZ$130 million funding package.
| ($ million) | Group Total |
|---|---|
| Gross Debt | 86.0 |
| Cash on Hand | 7.0 |
| Net Debt | 79.0 |
| Post Identified Synergies LTM EBITDA | 42.9 |
| Net Leverage Day 1 | 1.84x |
SEG has outlined a credible pathway to reduce leverage to approximately 1.2x within two years, supported by two key levers:
- Expected free cash flow generation, with MediaWorks noted as having greater than 80% free cash conversion
- NZ$50 million in available MediaWorks tax losses on Day 1, which are expected to assist the group in de-leveraging quickly
Why the trans-Tasman audio play makes strategic sense
Scale matters in audio media because a larger, combined listener base increases a broadcaster’s value to advertisers, allowing it to command stronger pricing and broader campaign mandates across multiple markets. For SEG, the MediaWorks acquisition is designed to deliver that scale immediately across two geographies.
The original acquisition announcement outlined the deal structure in detail, including the 59% EPS accretion projection and the acquisition multiple compressing from 5.1x to 4.2x once synergies are fully realised.
The key strategic pillars outlined by SEG are:
- Combined audience reach: The merged group reaches more than 5 million listeners across Australia and New Zealand, creating a leading trans-Tasman audio platform.
- Market-leading re-entry into New Zealand: MediaWorks provides SEG with the opportunity to return to New Zealand as the clear market leader, underpinned by spectrum, talent, and infrastructure that would be difficult and costly to replicate organically.
- Complementary content: MediaWorks’ strength in music and entertainment radio complements SEG’s sports content, broadening audience and advertiser appeal across the combined group.
- Digital growth via rova: MediaWorks’ total digital audio business is forecast to generate approximately NZ$19.1 million in revenue with an approximately 32% compound annual growth rate (FY24–FY26 forecast). The rova platform has more than 540,000 monthly active users, with a roadmap to 800,000 by FY30.
- Platform to extend SEG content into New Zealand: The group intends to leverage MediaWorks’ 2.4 million weekly listeners and advertiser base to deploy SEG’s sport, events, and entertainment content into the New Zealand market.
- Identified synergies: Approximately A$5 million in annual synergies have been identified.
Craig Hutchison, CEO, Sports Entertainment Group
“Today marks a landmark moment for Sports Entertainment Group… This is exactly the kind of strategically important and value driving transaction we have been building toward.”
Hutchison noted that both businesses are performing strongly into Q1 FY27, with early benefits from the combination already evident in advertiser conversations and digital platform integration planning. He also highlighted MediaWorks CEO Wendy Palmer and the MediaWorks management team for their work throughout the transaction process.
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