Macquarie Media reports revenue and profit down, radio ratings strong

• Forecasting revenue and ratings growth at Macquarie Sports Radio

Radio broadcaster Macquarie Media has released its half-year results.

Both EBITDA and net profit were down by 4.9% and 6% respectively.

Group revenues, excluding discontinued operations, fell to $68.2 million, a decrease of $0.3 million or 0.4% on prior year. Advertising revenues were flat year on year.

The radio broadcaster is majority owned by Nine Entertainment Co.

Commenting on the results, Macquarie Media Limited (MML) chief executive officer Adam Lang said:

“The six months to 31 December 2018 featured the delivery of sustained audience leadership by our top rating stations 2GB in Sydney and 3AW in Melbourne. 4BC finished the year with the best audience result since 2013 and, in 2018, 6PR has proven to be capable of leading the talk radio audience in Perth. We are well set up to build on that success in 2019.

“Our Macquarie Sports Radio network was launched in April 2018 and has been refined throughout the year. We are pleased with the development of the format to date and confident that our audience and revenue will continue to grow as we head into the football season.

“Our sales team has improved customer service to advertisers by connecting our large and affluent audience with an increased range of solutions on our broadcast and digital assets. We have grown revenue on our News Talk network of stations by 4% over the prior period. We also continue to see the benefit of our advertisers connecting with both the News Talk and Macquarie Sports Radio audiences through live sport.

“We have seen a contraction, below prior year period, of advertising spends in the December, January and February months and a shortening of booking cycles. Whilst we are now seeing more positive signs for March to June revenues, it is extremely difficult to forecast the impacts of the NSW election in March and the expected federal election in May, a subdued housing market, and variable business and consumer confidence.

“Our HY 2019 earnings (underlying EBITDA) were 4.9% below the prior year result driven by a 0.4% decline in revenue and a 1% increase in costs. We maintain a very high focus on cost saving and efficiency opportunities in order to consistently deliver a strong return to our shareholders in this fiscal year.”

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