APN, the outdoor, newspaper and radio organisation which owns Australian Radio Network (ARN) in Australia and The Radio Network (TRN) in New Zealand has released it’s annual report to the ASX for 2014.
Overall net profit, after tax and before exceptional items, is up 25% for the company with the Australian Radio arm a strong contributor. Its revenue was up by 18% but the extra costs, (up 21%) limited EBIDTA profit to 14%.
Growth is expected to be even stronger in 2014 following the purchase of 96FM in Perth, which for the first time, gives the network a five capital city reach and allows it to lay claim to the largest audience of any metro network in Australia.
The 96FM purchase capped off a big acquisition year for APN. Together with the equity raising of $132m and the sale of APN Outdoor, the Company acquired from Clear Channel the 50 per cent of the ARN and TRN in that it did not already own.
APN Chairman, Peter Cosgrove (pictured) said, “These transactions confirm the Board’s strategy to invest in radio and outdoor as growth businesses. As a result of those changes to our business portfolio, our radio and outdoor assets now represent just over 60 per cent of our proportionate earnings, which in turn has reduced publishing to under 40 per cent.”
Mr Cosgrove also hinted at growth opportunities for radio brands in Asia, “The iHeartRadio platform is growing very fast and has a number of opportunities in Asia,” he said.
For the full annual report, go here.
For Bob Peters’ independent analysis of ARN’s results go here.