Pacific Star downgrade earnings guidance

Following the closure of Melbourne talk station MTR, 50% joint venture partner Pacific Star Network (PNW) has issued a revised earnings guidance for the full financial year 2012.

In a release to the market, PNW has noted:

"The company's half year report released on 23 February 2012 provided full year EBITDA guidance of $ 1.3 – $ 1.5 million…..the cessation of MTR is likely to limit the company's ability to recover costs from that entity in the future.

In light of this, directors advise a revised full year EBITDA guidance of $ 0.9 – $ 1.0 million for (FY) 2012"

Referring to MTR in his Herald Sun column, Andrew Bolt has commented that the two key factors in the failure were the strength of 3AW and 774, and the "disastrously weak' signal.

Bolt said "yet I do not regret a minute, and will miss my daily 40 minutes with Steve Price…..I re-signed with Macquarie recently, and will let you know what I shall be doing with them when I know it".

On the AM 1377 frequency, Pacific Star are presently broadcasting the MyMP digital format, with news on the hour and some announcer breaks. It appears likely that 3MP will be reborn on the frequency officially at some point.