Macquarie Communications Infrastructure Group (MCG) has confirmed a strong profit result and announced distribution guidance of 42 cents per share for the year ended 30 June 2007. The company operates transmission company Broadcast Australia in this country and a similar company, Arquiva, in the UK.

Operating revenue increased by 107% to $995 million, reflecting the first full year of revenue from the recently acquired UK operation. Profit (EBITDA) was $391 million and dividends were up 7.7% over the total distribution for 2006.

Broadcast Australia increased revenue by 11.7%, bringing in $224.5 million this year, contributing to a result better than expected in the prospectus.

Chief Executive Officer Scott Davies told this week’s Annual General Meeting that, in the UK, Arquiva won 19 of the 20 new FM Radio transmission contracts granted this year. It also supplies digital radio transmissions. In Australia Broadcast Australia had solid revenue growth through the roll out of digital tv networks this year and is hoping to gain further growth through the expansion of the ABC and SBS transmission networks.

“MCG’s portfolio of communications infrastructure assets continues to perform well. The 7.7% increase in distributions is driven by operating cash flows and is consistent with previous guidance of 5% to 10% growth over the period 2006 to 2010.

“The outlook for MCG remains positive, with both Arqiva and Broadcast Australia well
placed in the lead up to digital switchover having secured long term digital broadcasting
contracts and with several years to run on existing analogue contracts.”

Commenting on the changes taking place in the Australian media landscape Davies said the expansion of channels coming as a result of the release of new channels will present “growth opportunities” for the company.