Macquarie Media has released its annual results with growth in Net Profit After Tax of $21.5 million up $4.2 million, or 24% on last year.
As reported last week on radioinfo, Fairfax Media, currently in merger talks with the Nine Network, is a major shareholder with 54% of shares, but Macquarie Media controls the daily operations of the company.
Revenue for Macquarie Media, excluding discontinued operations, grew by 4% to $136.3 million, an increase of $5.2 million from last year.
Macquarie says the underlying operating costs increased by $2.3 million, or 2.2%.
Directors have declared a final fully franked dividend of 4.0 cents per share to be paid in September.
Commenting on the results, Macquarie Media Chairman, Russell Tate, says it is a solid result.
“Our news-talk stations have continued their ratings dominance in Sydney (2GB) and Melbourne (3AW), and we have seen strong and sustained audience growth from 6PR in Perth and a healthy audience increase in the last survey of the year from 4BC in Brisbane.”
Tate, who stepped down as Executive Chairman to Chairman (Non-Executive) on 30 June 2018 says the result is on the back of an “exceptionally strong performance by our sales teams who have achieved year on year revenue growth on our news-talk stations of 9.0% compared to overall metropolitan market growth of 3.8%.”
There has been some impact to short term revenue potential as a result of Macquarie Media switching three east-coast “Talking Lifestyle” stations to the new “Macquarie Sports Radio” format.
Tate says “This new format will take time to build audience and revenues and we are hopeful that it will achieve break even revenue levels during FY19 which will add a further 4.0% to our total revenues.”
On the subject of the proposed merger with the Nine Network, he says if completed. “Such a combination would in my view present opportunities for Macquarie to both deliver, and benefit from, significant synergies”.
Macquarie Medias detailed report is here