Revenue from continuing operations at ARN (listed as HT&E) saw revenue grow 16% to $225m across calendar 2022 as the company published its full-year results.
While the company has long dominated the Sydney FM radio market, chief executive Ciaran Davis noted audience growth at 97.3FM in Brisbane and KIIS 101.1 in Melbourne. Elsewhere in Melbourne, Gold FM remained a strong performer with The Christian O’Connell Breakfast Show extending its ratings winning streak to 16 consecutive surveys.
Highlights for Australian Radio Network included:
• #1 broadcast ratings
• Audience growth in key markets
• Sydney duopoly continues to deliver with KIIS 106.5 and WSFM
• ARN remains the #1 podcast publisher, a position it has claimed for 20 consecutive months
• Advertising revenue on podcasts continues to grow with monthly podcast billings close to $1m
HT&E has few investments outside of its core ARN radio business. The company continues to look for an exit from the software business Soprano where HT&E holds a share of 25%.
The company also had a tough year with its Hong Kong outdoor business because of Covid. It also lost the contract for HK Tramways.
ARN outlook
The company reported Q1 2022 revenues are expected to grow 3-4%. It noted there continue to be lingering effects of Covid on bookings in key categories including, hospitality, travel and tourism, although it noted there had been a positive turnaround in those sectors.
Now a key player in regional radio with the acquisition of the Grant stations, regional revenues are expected to finish up 5-6%.
HT&E chairman, Hamish McLennan, said, “Whilst the COVID-19 pandemic dramatically impacted our way of life and disrupted business models, HT&E navigated the period well delivering a number of key strategic objectives, strengthening the core Australian radio operations and continuing to invest in its digital audio growth strategy.
“We resolved a long-running taxation dispute and removed a significant potential balance sheet liability. Whilst we remain satisfied that its treatment of the branch matter was consistent with relevant taxation legislation, the Board viewed the settlement arrangement reached as being in the best interests of shareholders. The settlement of $70.7 million was considered a fair and reasonable outcome for the company allowing HT&E to look forward with certainty.”
HT&E CEO & managing director, Ciaran Davis, said, “We have made excellent progress in executing our strategy to build Australia’s best broadcast radio and digital audio company.
“The investments in our strategic priorities are delivering as we continue to build a media business offering scale of audience, multi-platform content, increasing data targeting capabilities and ease of transaction for our partners.
“Our ratings success across our metropolitan network were outstanding throughout 2021, driven by commitment to recruiting and retaining the best Australian talent, with ARN maintaining its dominant market position as the #1 network for over two years.
“The acquisition of 46 radio stations from Grant Broadcasters is strategically compelling, creating a high-quality footprint across the whole of Australia and will accelerate future growth to maximise shareholder value. It provides access to increasingly important and growing regional audiences, enhances ARN’s ability to deliver content across multiple platforms and capitalises on the shift towards digital audio consumption.”