The Sports Entertainment Group has signed an agreement with HT&E’s subsidiary ARN for the purchase of 4KQ for $12 million.
The former #1 AM music station in Brisbane will take on a 24/7 sports/talk format under the groups SEN brand and become 693 SENQ.
The addition 4KQ enhances SEG’s existing owned platforms in Queensland making it the flagship station of the state, and giving the group 35 stations in operation in all capital cities and states.
The other Queensland stations are:
- SEN Gold Coast 1620AM
- SENTrack Brisbane 1053AM
- SENTrack Atherton 99.1FM
- SENTrack Ingham 96.9FM
- SENTrack Kingaroy 96.3FM
- SENTrack Darling Downs 91.5FM
SEG’s Managing Director, Craig Hutchison, says, “We know Queenslanders love their sport. 693 SENQ will provide a unique offering and constant sporting content like never before as Queensland’s only dedicated sports station.
“We already have great momentum with ‘Breakfast with Pat & Heals’ and I look forward to announcing more Queensland specific content in the coming months. Our business model is sport, and parochial sport is at the heart of that. Queenslanders love their state and its teams and we are excited to play our role in amplifying that passion.”
The purchase price payable for 4KQ is $12.0 million cash before completion adjustments and will be funded as follows:
- $5.0 million via a placement of 25,000,000 new SEG shares to existing shareholder Oceania Capital Partners Limited at a deemed issue price of $0.20 per share subject to approval from the FIRB
- $7.0 million via surplus operating cashflows and existing debt facilities.
The purchase of 4KQ mirrors the acquisition of Sydney’s 2CH in 2019 and will guarantee that the new station will not compete with any of ARN’s Brisbane stations, and is likely to push the current audience onto other stations such as 4BH, or possibly other FM music stations.
4KQ has performed strongly in the Brisbane market in recent years with an older music format and well known local personalities. Since the first survey or 2020, the station has been number one once, second 6 times, and in the most recent survey came in at 4th place.
In share the station finished survey 2 with 9.4%, not far below the top stations, which scored 10%. The interactive chart below shows the ebb and flow of 4KQ’s results since Survey 1 in 2020.
ARN’s Ciaran Davis told radioinfo when the company acquired the Grant Broadcasting stations that 4KQ is a much loved station with a long history, but that the music format on the AM band, despite its high ratings, has not been as commercially successful as the company wanted, with agencies not placing ads with the AM music format.
ARN is required by the regulator ACMA to divest itself of one of its stations due to market limit rules after its acquisition of two Grant Broadcasting stations in the overlapping listening area. It chose 4KQ.