The effect of the current pandemic on station revenue continues to bite with the latest figures from Deloitte showing a drop of over $51 million in the September quarter.
Australian metropolitan commercial radio stations recorded $130.402 million in advertising revenue during the September quarter, down 28.15% from $181.489 million the previous year, according to figures compiled by Deloitte and released by Commercial Radio Australia.
The Melbourne market saw a YOY decrease of 36.61% to $37.645 million, while Sydney stations fell 26.9% to $40.241 million and Brisbane stations were down 26.75% to $21.204 million. Revenue for Perth stations fell 18.66% YOY to $18.104 million and Adelaide was 16.66% lower with a recorded revenue of $13.206 million.
The good news is that compared to the June quarter (Q4 FY20), there was an increase of 14.28% from the $114.104 million in revenue recorded during that period. Q4 FY20 saw a revenue decline of 46.62% from the year before. Brisbane was up 25.26% when comparing revenue from Q4 FY20 and Q1 FY21, with Perth up 22.27%, Adelaide up 19.35%, Sydney up 18.22% and Melbourne up 1.03%.
CRA chief executive officer Joan Warner, said, “These numbers are not surprising given the revenue results we have seen this year and the ongoing impact of COVID-19, as well as existing weakened economic conditions preceding the pandemic. The positive trend in all markets from the previous quarter and less of a year-on-year decrease in overall revenue for the quarter when compared to Q4 FY20 is certainly a trend that we hope continues.
“Radio is resilient and remains a competitive option for advertisers. Through RadioMATRIX, the radio industry’s advanced ad buying platform, we are transforming the way audio advertising is bought and sold. With new developments set to go live in the coming months, we are making it easier for media buyers to understand the opportunities across radio’s diverse audio ecosystem, so advertisers can have confidence in considering radio for their upcoming campaigns.”
The Deloitte figures report actual revenue received by metropolitan commercial radio stations in the five major capital city markets and include agency and direct ad revenue.
In better news HT&E, the parent company for ARN, today confirms it will not be eligible for ongoing financial support under the extended JobKeeper program from 28 September 2020 to 3 January 2021.
ARN experienced improved trading conditions relative to the previous quarter, with total revenues down 22.5% on the prior year comparative period. This result was significantly ahead of the broader metro radio market, which was down over 28% for the quarter.
Early trading for the remainder of Q4 is encouraging with the possibility for further improvement on the previous quarter’s result should current COVID restrictions in Melbourne continue to ease in coming weeks, and other key metro markets remain unchanged.
CEO of HT&E, Ciaran Davis, said; “ARN’s trading is encouraging as we continue to gain commercial market share. The actions we have taken across the business this year have placed the company in a strong position to enhance our leadership as both the #1 national radio network and podcast publisher in Australia.”