HT&E up by 3.5%, but warn of a slower 2019

HT&E have presented their annual report showing their radio revenue grew by 3.5% in 2018, despite slowing in the 2nd half of the year.

ARN’s revenue of $235.5 million was up by 3% on the previous year, but a 14% increase in operating costs to $30.8 million meant an EBITDA net increase of just 1% to $80.5 million.

The proceeds from Adshel of $550m (net of costs and cash transferred with the business) were used to repay drawn debt, and fund a $222.4m special dividend and of just under $40m share buyback.

Radio now makes up 87% of HT&E’s revenue mix, up from 31% just 5 years ago when publishing was contributing 61%.

The company has also moved from a net debt of $437 Million in December 2013, to have a net cash balance of $128 million at the end of last year.

With broadcast radio still the #1 source for audio, ARN continues to successfully grow audiences with their digital platforms extending audience reach, and iHeartRadio bringing broadcast radio and on demand audio together.

According to the report, ARN now has 5 million listeners and HT&E have been quick to realise the potential of Smart Speakers, acknowledging that 5.7 million or 23% of Australians now own a device and the 30% penetration has grown from zero 18 months ago.

With 7 out of 10 users saying they listen to AM/FM radio on their smart speakers, ARN launched ‘Sonic’ in 2018, an audio branding division that combines sound, technology and science to build brand strength in an audio environment.

HT&E have cautioned that after a soft March, ARN’s Q1 revenue is approximately 5% behind last year, and despite an improvement in April the first half of 2019 could be 2-3% behind last year.

Macquarie Media have also cautioned their shareholders about an expected downturn this year saying that trading conditions have fallen below expectation and underlying full year earnings could fall from between $29 – $32 million to between $27 –  $29 million.

 
 
 

Advertisement

Tags: | |