Thompson Criticises Macquarie Equities Report

DMG Radio CEO Paul Thompson immediately took issue with a negative Macquarie Equities stockbroking forecast when he returned from his UK trip this week.

The Macquarie Equities report said that DMG Australia might not get enough support to bid aggressively for the next round of FM licences because of (DMG’s parent company) DMGT UK’s increasing levels of debt. Macquarie Equities analyst Alex Pollack said in the report: “Recent results for DMG in the UK suggest that, so far, the financial returns for the foray into Australian radio have not been stellar.”

Thompson said the report was “inaccurate and designed to support a rival company.” He told The Australian newspaper: “I have just been in the UK and the company has absolutely reconfirmed its commitment to going forward as far as the new licences in Australia are concerned. I don’t think anyone should be hoping DMG would go away.”