Last week’s acquisition of Southern Cross Broadcasting’s radio, by media group Fairfax, has placed the spotlight on radio profitability, particularly in Queensland.

Fairfax is paying a price of $480 million and will be offloading some regional radio licences it already owns to Macquarie, and it has also acquired talk radio statio 4BC and easy listening station 4BH.

Graham McVean is associated with Beecher Investments which owns a number of rural and Queensland city stations, and is a partner with Fairfax. This group owns River 949 in Ipswich along with 4BU and Hitz Fm in Bundaberg.

McVean has told the Courier Mail that the market for regional radio has been on the increase for four or five years.

Mr McVean said the resurgence in radio was very much connected with Queensland’s strong economic growth.

“If you look at stations up and down the coast, they are going very well on the back of the surging economy.”

“The markets are growing and responding very well.”

Radio 4BC and 4BH general manager David McDonald said he was not anticipating any significant changes and that it’s business as usual.

Mr McDonald said both Brisbane stations had very strong executive team which had underpinned the results.

It’s fair to say that before Southern Cross, the business was not run well and you have to have the right balance of people skills and business acumen,”

“If you keep radio stations local you will always be a vital part of the community you belong to and that is what we try and do.”