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TAB NZ to acquire SENZ digital and audio from Sports Entertainment Network NZ

Sports Entertainment Group Limited (SEG) is pleased to announce its wholly owned subsidiary Sports Entertainment Network NZ Limited (SEN NZ) has entered a non-binding agreement with TAB New Zealand (TAB NZ) to acquire SEN NZ’s digital and audio businesses (SENZ Digital & Audio) including the SENZ brand, app and website, and its network of 28 radio stations across 29 frequencies.

The multi-faceted deal will see SEG receive NZ$4 million cash. The transaction is also paired with a content supply partnership. SEG’s Australian business, SEN, will make all SEN programming available on SENZ frequencies. SEN NZ will remain the commercial arm for SENZ Digital & Audio, sourcing third-party advertising revenue for the business under new ownership. SEG will earn commission income on advertising revenue it sources.

SEG has also bolstered its strong relationship with TAB NZ’s partner Entain New Zealand, and recently agreed to extend its extension to its commercial partnership with Entain’s Australian brands for a three-year term.

SEG Chairman Craig Coleman said the transaction has strengthened its relationship with a number of key stakeholders and maintained an ongoing involvement with New Zealand sports and racing fans.

“We are delighted to have helped shape a business with the New Zealand sports fan at its centre. The transitioning to the new ownership structure and supporting commercial agreement enables the SENZ Digital & Audio to become part of a broader, integrated and improved sports and wagering offering.”

“Importantly, this transaction removes start-up losses from our operating performance. In FY23, our New Zealand business represented a negative $2.4 million drag on underlying EBITDA. SEG continues to focus on reducing net debt in FY24. This transaction aligns with this objective in addition to several other proposals and initiatives under consideration.”

The transaction is subject to satisfactory completion of legal agreements with operational handover expected to commence on February 1, 2024.

 

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