ARN revenue down in half year results

HT&E Limited formerly APN News & Media has released its results for the six months ending 30 June 2017.

On a statutory basis, revenue for the company that owns ARN rose 75% to $225.7m compared with $129.1m in the prior corresponding period, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 28 per cent to $46.0m, and net profit after tax and before amortisation (NPATA) attributable to shareholders was up 108 per cent to $22.0m. 

HT&E Chairman, Peter Cosgrove, said; “In its first period of reporting since the divestment of all traditional publishing assets, HT&E has delivered a mixed result for shareholders, however there is a platform of highly attractive media assets to build on. Our confidence is reflected in the dividend declared, following its reintroduction in February.

“Adshel is a standout media business in both Australia and New Zealand with above market revenues and earnings, as a result of our continued investment in digital. Our radio business had a weaker half in a softer radio market, yet the industry fundamentals around radio remain compelling.” 

ARN revenues fell 6 per cent to $105.3m in line with guidance provided at the AGM, while costs were flat.

Radio has maintained a focused cost management program and while investment in talent and digital assets have meant increased costs of $4.5m, these have been largely offset by operating cost savings and cost of sales reductions on lower revenue.

Key talent contracts have been secured across ARN, with WSFM’s Jonesy & Amanda recently renewing for three years. 

ARN had a strong ratings performance in the final survey for the half, that included KIIS1065 having the #1 FM Breakfast show with Kyle & Jackie O on 10 per cent share, WSFM #2 FM Breakfast show with Jonesy & Amanda and #2 FM station in Sydney, while in Brisbane, 97.3 returned to #1 FM Breakfast show with Bianca, Terry and Bob, as well as being the #2 FM station. In Perth, a new station format is delivering improved ratings performance. 

HT&E CEO & Managing Director, Ciaran Davis, said;  “Whilst the radio result was disappointing it remains a very robust sector with consistent year-on-year audience and revenue growth. The medium remains highly attractive to advertisers due to its immediacy, its ability to integrate content across multiple platforms, but most importantly, its effectiveness at delivering results for advertisers. 

“ARN’s growth over the past five years has been built on strong audience success, and our ability to efficiently monetise this audience better than anyone else. Being #1 in every market we operate in remains our goal for this business and, following a challenging 2016, we are making progress to regain our leadership position.”


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