EON Broadcasting’s Mix and Sea FM stations on the Sunshine Coast made a profit of almost $1.6 million in the last financial year, according to the latest financial results from parent company Oceania Capital.
The stations made an average of $133,000 per month during the financial year, a strong margin for an Australian regional market, but down by 3% on the previous year, when the station was owned by SCA.
The results, reported to the Stock Exchange yesterday, show the second half of the financial year was weaker for the two stations than the first half. The investors attributed the weaker second half to the election and related market uncertainty.
2014 was the first full year of ownership of the EON Broadcasting, which owns 91.9 SeaFM and 92.7 MixFM on the Sunshine Coast in Queensland (operated under EON’s subsidiary, Sunshine Coast Broadcasters or SCB).
Overall, including the company’s non-media business units, Oceania Capital generated $7.8 million in revenue (an increase of 820%), and made a trading loss of $4.8 million. The company did not declare a dividend for the financial year.
Commenting on the Sunshine Coast stations, Oceania Capital Partners Managing Director Robert Moran, said:
“We remain very pleased with the performance of this investment as a standalone business and we are optimistic about the performance for FY15.
The financial year saw the successful transfer of the business out of the much larger national FM radio network operated by Southern Cross Austereo. There have been positives and negatives for the business in exiting the larger network but the relationship with Southern Cross Austereo remains strong and the SCB stations remain part of the Southern Cross Austereo “family” while also maintaining a very strong local presence.
For the first half trading we reported that the SCB business had increased revenue by 3% as compared to the previous comparable period (being the 6 months ending 30 September 2012).
This increased performance did not continue into the second half, with the second half revenue coming in at an 8.5% deficit to the previous corresponding period (being the 6 months ending 31 March 2013).
For the full financial year, therefore, Sunshine Coast Broadcasters saw an overall 3% decline in revenue in FY14 as compared to FY13. While no decline in revenue year on year is positive, the decline in revenue in this case from $7.1 million in FY13 to $6.9 million in FY14, represents a $200,000 decline in a year that was adversely affected by volatile trading conditions through the federal election period and a period of lacklustre economic performance in the months that followed.
The second half revenue softness was equally experienced at the local sales level and the national sales level. There were a number of internal matters which contributed to the local sales deficiency which have now been addressed. However, the business remains exposed to national sales revenue, which is dependent on the Southern Cross Austereo relationship. If that national network experiences buffeting in the market, SCB’s sunshine coast stations are also likely to be adversely affected. As we have little control over the national sales channel our focus is on expanding sales through the local channels in order to make up for any national deficiency.
The Sunshine Coast Broadcasters stations have made a number of very positive steps forward and the enthusiasm and drive within the business is at a very pleasing level.
Sunshine Coast Broadcasting is taking its format more local on its 92.7 MixFM station having recently secured the services of the broadcasting team known as Todd and Sami, who are very popular on the Sunshine Coast, to create a new, exciting, local weekday Drive show (3pm to 7pm each weekday). With this very welcome addition, 92.7 MixFM will be broadcasting local all day, starting with market leading and iconic Mark and Caroline for Breakfast from 5am, live and local throughout the day with Lyndon and Tim, and then Todd and Sami will bring you home until 7pm.
The rising stars on the Sunshine Coast are our 91.9 SeaFM BarRat and Jess Breakfast team. 91.9 SeaFM focuses on the under 40 demographic and matches the lifestyle of the Sunshine Coast of sea, surf and sun. The programming strategy for SeaFM combines significant locally produced content to produce the SeaFM feeling, as well as taking some of the country’s leading radio personalities (including Hamish & Andy, Dan & Maz, Kyle & Jackie O and Angus O’Loughlin of The Bump) to produce an unequalled blend of entertainment, humour and music.
The outlook for EON’s first stations is positive and we continue to look for additional stations and related opportunities to add to the EON stable.