Program Directors have been renamed Content Directors at Austereo to more appropriately reflect the company’s focus on new media. CEO Michael Anderson told today’s half year analysts results briefing that the change is in line with the company’s recent restructure which makes Austereo “not just a radio business with an interactive division… but an interactive company.”
Interactive listening to Austereo stations increased on other platforms as well as on traditional radio sets. Mobile phone listening was 1.41 hours, Online listening was 2.42 hours, and Podcast listening was 54 minutes according to the company’s own in-house research.
Speaking at the results briefing, Chairman Peter Harvie and Michael Anderson told analysts:
“Austereo is a content producer, using every relevant platform to carry programming and commercials. There are no longer clear boundaries in content delivery… Austereo is now driving down a three-lane highway: Analogue, Digital and Online/Interactive.”
The company expects DAB+ will re-focus audiences and advertisers and create
a powerful reason to increase usage of radio.
Austereo is generating “millions” in revenue just from its online activities alone, and much more from combined radio and online activities, Michael Anderson told the briefing.
The company will spend money this year moving the rest of its operations to new premises in its quest to be ready to deliver multimedia content. Peter Harvie also said the company plans to allocate further capital expenditure to digital radio equipment, but the amount “is not substantial” in relation to the total bottom line.
While analysts expect all media to experience some hard times in the coming 12 months, Peter Harvie says radio is more resilient that newspapers and tv and can “withstand the hard days.” Austereo’s January sales achieved budget, according to Harvie.
Austereo’s sales revenue is up 8.7% to $138.6 million and the company’s sales market share has increased when compared with the previous corresponding period. Client retention is an “exceptional” 97.5%.
EBIT increased 7.8% to $48.547 million, while earnings per share is up 9.7% to 7.9 cents per share.
Austereo has now also sold its station in Athens, Village 88, which is “consistent with the policy of
focusing on Australian business opportunities.”
The company reported continued market leadership with gains in
the reporting period of key audience demographics between survey 5 to 8 last year:
* 10+ increases from 20.9% – 21.1%
* 25 – 39 increases from 30.2% to 33.9%
* Under 40 increases from 33.2% to 35.5%
The Today network “continues to build momentum” and Austereo is also putting a lot of work into the triple M network to achieve “regrowth.”
Key triple M network initiatives and highlights this year include:
* Shebang strengthened on Triple M Sydney with
Paul Murray joining the team
* Peter Helliar & Myf Warhurst launched in January on Melbourne’s Triple M replacing The Cage
* Kym, Ali and Dzelde launched on Triple M Adelaide this week (see our other story)
* Mix 94.5 Perth – eighth year as No. 1
While Michael Anderson would of course like immediate ratings growth for the new initiatives, he told analysts that, realistically, he is giving the new programs 12 months to bed down.