Vinyl Group incinerates another $9m as SCA overtakes ARN Media again

Jul 17, 2025

Welcome to an end of day update from Unmade, on the day Vinyl Group informed the market that it has burned more than nine million bucks over the last year.

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Vinyl Group burns another $9.1m as it spies breakeven ahead

Vinyl says it is less than six months away from breaking even

Vinyl Group today told the market that it burned $9.1m in the last financial year, but reiterated its promise to hit breakeven by the end of the year.

In its mandatory quarterly cashflow update to the ASX, Vinyl Group said that based on the company’s current trajectory it has access to enough money to cover just under two quarters, but that it plans to start breaking even before the end of the year by increasing revenues and cutting costs.

The group’s two divisions are Vinyl Media which includes Variety Australia, Rolling Stone Australia and Mediaweek, and its music industry platforms including Vampr and Jaxsta.

According to the cashflow filing, Vinyl brought in $3.8m in the last quarter but spent $5.5m in doing so, a burn rate of $1.7m for the quarter.

For the full financial year, Vinyl Group brought in $14.3m but spent $23.6m - a net burn of more than $9m. That included $7m on staff costs and $9.7m on product and operating costs.

Vinyl Group also spent a further $5.2m during the financial year on acquisitions including Concrete Playground.

The updated numbers do not represent Vinyl Group’s full annual report which will follow in a few weeks, but a simplified Appendix 4C report which unprofitable ASX-listed businesses are obliged to publish at the end of each quarter.

The company stated: “We are focused on demonstrating a clear and credible path to breakeven. Our internal modelling shows this is achievable by Q2 of this financial year, with operational breakeven expected once revenue consolidates in the $25m range on an annual basis.”

In commentary accompanying the filing, CEO Josh Simons said the company was observing “a trending mix towards higher margin media deals and improved receivables collection”.

He added: “Across the past two years, our business has changed shape. What began as a fast-scaling music-tech platform has matured into a diversified, multi-division media, music and technology group.”

The company is, Simons said, “progressing towards sustained cash flow positivity.”

On Tuesday it emerged that Vinyl has axed the latest quarterly edition of Rolling Stone Australia, its only print publication.

Unmade Index ticks upwards as SCA retakes lead over ARN

Southern Cross Austereo’s share price jumped by a hefty 9.4% today after activist investor Sandon Capital revealed it had upped its stake in the business from an 8.1% to 10.2% voting stake. Sandon has signalled that it intends to try to spill the SCA board.

However SCA is still trading close to a historic low, with the company’s market capitalisation sitting on $140m.

It was a good day for most of the broadcasters. Sports Entertainment Group, owner of SEN Radio, gained 3.5%. Seven West Media also gained 3.5%. And Nine gained 1.1%.

ARN Media was the exception, losing 1.1% which saw its market cap fall back below that of SCA.

Vinyl Group was up by 4.4% taking it above both SCA and ARN.