Sports Entertainment Group (ASX: SEG) Doubles EBITDA and Upgrades Guidance – Is This Small Cap a Buy?

Sports Entertainment doubles EBITDA and lifts guidance

Sports Entertainment Group (ASX: SEG) was in serious trouble two years ago. In late 2023, it needed emergency funding just to stay afloat. Now, the picture looks very different. This week, SEG reported the strongest half-year result in its history. EBITDA almost doubled to A$9.7 million, revenue rose 28% to A$73.7 million, and management lifted full-year guidance from at least 20% EBITDA growth to at least 40%. When a company upgrades guidance this sharply mid-year, it usually signals strong momentum that the market may not yet fully recognise. With shares trading at A$0.285 and a market value of about A$77 million, investors are left with a key question: has the market overlooked this turnaround story?

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TV Production and Events Emerge as SEG’s Growth Engines

Most people know Sports Entertainment through its SEN radio network, which remains the backbone of the business, with audio and digital revenue up a steady 11%. But the real excitement is elsewhere.

Rainmaker, SEG’s TV production arm, grew revenue by 61% after picking up Channel 7’s flagship football programs The Agenda Setters and Unfiltered. Events revenue jumped 32%. This matters because SEG is no longer just a radio company; it is becoming a multi-channel sports media business, and that diversification reduces the risk of relying on one revenue stream.

The September 2025 acquisition of RSN adds further reach as Sports Entertainment builds an ecosystem covering radio, TV, digital, and live events, making the whole platform more valuable to advertisers.

Clean Balance Sheet and Shareholder Returns Signal Confidence

What really catches the eye is how much cash Sports Entertainment is returning while still growing. The company declared a fully franked 4-cent-per-share dividend this half, returning A$11.2 million to investors. Since FY25, total dividends come to A$19.6 million, and A$16 million in debt has been repaid. For an A$77 million market cap business, that is exceptional.

SEG holds A$15.3 million in net cash after receiving the final A$12 million from the Perth Wildcats sale in January 2026, with senior debt down to just A$11.4 million. When a company pays large dividends and reduces debt while growing earnings, it indicates that management believes the growth is sustainable.

The Investor’s Takeaway

At about A$77 million market value and A$9.7 million in half-year EBITDA, Sports Entertainment Group appears fairly valued. If it meets its upgraded guidance, the stock could trade on well under 5x forward EBITDA, which is inexpensive by media industry standards.

The bull case is clear. Its TV and events divisions are growing, the Australian Football League season provides a steady content boost, the balance sheet is in better shape, and management has made smart acquisitions. At A$0.285, the risk-reward profile looks appealing.

The bear case should not be ignored. Advertising income is cyclical and usually falls quickly in an economic slowdown. The company is also closely linked to Australian sport, limiting its total market, and as a smaller operator, it competes with larger players for valuable content rights.

Overall, Sports Entertainment stands out as one of the more compelling turnaround stories among ASX small caps. More cautious investors may want to see a full year of results under the new guidance. But for those comfortable with small-cap media exposure, the business seems to be improving, while the share price has yet to fully reflect that progress.