MRN highlights future growth in FY15 statements

Macquarie Radio Network has released its financial statements for the 2014/15 Financial Year, showing $97.4m of reported revenue and a $7.1m EBITDA.

MRN Executive Chairman Russell Tate however, has warned that the figures shouldn’t be viewed in comparison to other years due to MRN’s recent Fairfax merger and the use of a Reverse Acquisition accounting method.

“There is very little that can be taken form these results as a pointer to the future performance of the Company. Following the signing of the Merger Implementation Agreement in December 2014, and with considerable confidence in a successful outcome, our focus shifted to the planning, operational and structural changes to optimise the benefits of the merger.”

Tate also said that a total of $10m in cost and operational synergies had been realised, and the associated one-off costs recognised in FY15.

He added, “Further significant costs and operational synergies will be realised in FY16. We are now starting to see revenue synergies from our national network of stations and the greatly enhanced sales opportunities the network presents.”

“At this stage we believe FY16 EBITDA will fall in the range between $20m and $25m. The rate at which we are able to convert the revenue potential of our network will be the key determinant of MRN’s earnings growth and trajectory.”

The report also describes the sale of Macquarie Regional Radio, parent company of QLD station like 4HI and 4VL as being “highly probable”.