Macquarie Media posts significant profit increase over last financial year
Following on from the news of Macquarie Media proposed absorption into Nine as a part of the Fairfax merge, the broadcasting giant has revealed a significant increase in gross profits over the 2018 financial year.
The results, which Macquarie Media chairman Russell Tate described as “strong”, shows a net profit of $21.5 million after tax over the last 12 months. This equates to a 24% profit increase on the postings of the last financial year.
Tate attributes the growth to strong station ratings and an expanding audience, commenting, “Our news-talk stations have continued their ratings dominance in Sydney (2GB) and Melbourne (3AW), and we have seen strong and sustained audience growth from 6PR in Perth and a healthy audience increase in the last survey of the year from 4BC in Brisbane.”
The chairman also touched on Macquarie’s switch from three east-coast Talking Lifestyle stations to the new Macquarie Sports Radio format, which threatens a significant impact on short-term revenue potential.
“This new format will take time to build audience and revenues, and we are hopeful that it will achieve break-even revenue levels during FY19, which will add a further four per cent to our total revenues,” Tate said.
On the topic of the proposed Nine takeover of the radio network’s biggest shareholder, Fairfax Media, Tate commented with excitement.
“Such a combination would in my view present opportunities for Macquarie to both deliver and benefit from significant synergies.”
Macquarie Media CEO Adam Lang expressed his confidence in the continued growth of the network.
“We are dedicated to the customer service of our audience, clients and staff,” he said.
“As we approach our 100th year and position ourselves for the second century of operation, we aim to grow our news-talk and Macquarie Sports Radio networks to continue to give a positive return to shareholders.”
Full report available here.