The takeaways:
• Recent acquisitions give way to a revenue rise
• Stronger projected shareholder returns
• Regional integration delivering above-market growth
• 5.0cps fully franked interim dividend declared
Parent company of Here, There, and Everywhere (HT&E), ARN has revealed that total radio revenues for Q3 are showing 6 per cent to 8 per cent pace as this time last year.
ARN provided its trading update to the ASX Small and Mid-Cap conference yesterday, where it revealed that the growth emanated from both metropolitan and regional markets. The ASX Small and Mid-Cap Conference provides investors with an opportunity to hear from leaders across the broad range of ASX-listed small and mid-cap companies.
In HT&E’s half-yearly results it reported on the progress of its acquisition of 46 regional radio stations from Grant Broadcasters in January 2022 was exceeding expectations of its margin expansion. At the conference yesterday, HT&E revealed the regional acquisition has delivered an expansion to ARN and HT&E, with pro forma revenues up by 7 per cent, with strong local regional revenues delivering above-market growth at +10 per cent year on year.
HT&E CEO & managing director, Ciaran Davis said after the publication of its half-yearly report last month: “Maintaining the #1 radio network position in Australia for twenty-one consecutive surveys with #1FM stations in Sydney, Melbourne and Adelaide is a significant achievement. The addition of ARN Regional provides access to new audiences and we are encouraged by continued strong ratings performance in key regional markets.”
Reporting an increased group radio revenue of 7% and 11% growth in EBITDA in its HY22 results released last month, HT&E revealed that the high rates of listening data have given way to strong shareholder returns.
From its HY22 report, revenue for HT&E is up $63.5 million (58%) with regional numbers increasing by 11 per cent, a strong performance.