A jubilant executive team headed by Chairman Russell Tate outlined Macquarie Radio Network’s full year results for 2009/10 returning a record net profit of $6.17 million, up from just $222,000 the previous year and eclipsing the previous record in 2006.

Tate was quick to play down the apparent 2,678 per cent increase which becomes a more realistic 113 per cent increase on a “normalised” basis once you factor out last year’s abnormal, one-off payment of $4.5 million to Alan Jones to shore up his contract for the long term.

MRN’s profit increase was driven by flagship 2GB. Although music stable-mate 2CH remains profitable, its revenue is in decline as the age of its average audience has increased over recent years to around 65. Program Manager, Ian Holland has plans to tweak the music to bring the 2CH target demographic more in line with 2GB’s (which dominates 40 – 64) in the hope of making the duopoly irresistible to even the youngest and least AM friendly of media buyers.

As far as MRN’s new Melbourne joint venture MTR is concerned, Tate is under no illusions about the enormity of the task ahead to establish a new talk station in a market dominated by 3AW and the ABC. “It will take patience and deep pockets,” says Tate.

MTR, which began broadcasting just five months ago has racked up a “$405,000 NPAT… loss.”

The station’s first priority is to fix its patchy signal. MTR1377 uses 3MP’s licence which was originally chartered to service Melbourne’s outlying Mornington Peninsula region, which is why it can barely be heard in many parts of the city. “We are reluctant to ask people to sample us when half of them will hear little more than static,” says Tate.

He wouldn’t put a figure on what it will cost to remedy the situation, but says that technical surveys are well advanced and all indications are that it is doable. After that, he expects it will take at least one or two years for MTR to gain enough momentum for sustained profitability.

Looking to the year ahead, Tate says, “At this stage we are confident of achieving at least 10 per cent growth in our consolidated full year earnings. We have begun the new financial year strongly and our July and August revenues are well ahead of prior year numbers.”

Asked whether the election advertising had helped to boost July/August revenue, sales director, Mark Noakes, said, “Not really. Many of our regular advertisers deferred their campaigns because they didn’t want their message swamped by election ads. Besides, we didn’t get as much Labor advertising as other stations.”

“I wonder why?” joked Tate.