Austereo Group Limited has announced a 10.1% rise in half yearly net profit to $27.77 million.
In the six months to December, the group – comprising the Today and Triple M networks – has increased earnings before interest and tax (EBIT) by 7% to $44.6 million.
The result is due largely to a 10.4% jump in sales’ revenue to $134 million.
Group Chairman, Peter Harvie, says Austereo is looking to continue the positive trends in the advertising market in the six months to 30 June.
“We have been very pleased that our sales strength in the field has enabled us to significantly protect share in the market. The sales shares for the half were only marginally lower than the previous period.
“Audience shares came under pressure in the period, but remained clearly ahead of competitors. As at the final survey for the period, (AC Nielsen Survey 8, 7/12/04) Austereo held 23.2% of the mainland capital city 10+ market and 34.6% of the 18-39 demographic.
“The Canberra and Newcastle joint venture staions set new record sales levels, from strong audience results.
“Sustained advertiser confidence resulted in increased sales for Austereo and also for the commercial radio industry. In the period under review, the increased strength of the renewed Triple M Network was also an important contributor to the results.
“The current focus is now on accelerating the Triple M growth momentum and boosting the Today Network. Radio continues to grow as a medium of choice, for audiences and advertisers alike.”
Looking ahead to the second half of the financial year (’04-’05), Harvie says the period will likely see the launch of additional metropolitan radio stations.
“Currently, we anticipate the full year EBIT will range between $64 million and $68 million. The outcome will, of course, be subject to any major changes in market conditions. However, the advertising market continues to maintain its positive trend, with several major categories to become even more active.”
Austereo CEO, Michael Anderson, says increased competition called for a strong programming and marketing response.
“It is essential that our brand and creative leadership is sustained, through continuing investment.
“As signalled previously, the evolving market conditions demand heightened initiatives and we will ensure the necessary resources to build audience and sales shares. We are also continuing to develop exciting new programs to enrich our offering to audiences and advertisers.
“We see the future as one of great opportunity.”
Austereo has kept its interim dividend at 3.4 cents per security. Initial response to the half year profit announcement has been positive, with Austereo shares climbing four cents (2.5%) to $1.67.