APN revenues increase: market update

APN has updated the market on its latest trading results at an Investor Day held in Sydney today.

Year-to-date group revenues are 6% ahead 2014, with the key components of growth being increased NZME revenues and continued ARN growth. It is somewhat restrained due to decreased market conditions in Hong Kong, where group revenue has decreased 15% year-to-date.

Cost increases have been driven by ARN’s acquisition of 96FM Perth and investment into KIIS Melbourne, as well as integration costs at NZME.

ARN is continuing to maximise the changes made to its business in 2014 focusing on seven areas of growth opportunities including:

  • Realising Sydney audience gains 

  • Maximising talent changes in Melbourne breakfast 

  • Establishing a leadership position in the National Drive day part 

  • Monetising the purchase of 96FM in Perth 

  • Integrating 96FM into ARN’s five capital city network offering 

  • Growing iHeartRadio audiences and revenues, and 

  • Leveraging Emotive’s unique content marketing proposition 

APN Chief Executive Michael Miller said: “Following the successful and significant changes implemented across APN’s radio business in 2014, ARN is now executing well on a plan to maximise growth opportunities across our national metro radio network, including the increasingly important role we see for iHeartRadio.” 

NZME is seeing the benefits of its integrated sales proposition through expanded audience share and revenue from both core and new revenue streams. Digital revenues are up more than 50 per cent year-to-date, with online revenue market share increasing from 16 per cent to 20 per cent. The colocation of the three businesses will be completed by February 2016, which will enable the full benefits of integration to begin to be realised.

Miller said: “NZME is increasing market share by transitioning from selling products to selling its expanded audiences via an integrated sales proposition. The low cross-over of customers in the three businesses is providing revenue growth opportunities.”

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