APN report ‘mixed performance in Q1’

APN News & Media Limited, the parent company of the Australian Radio Network (ARN) and The Radio Network (TRN) in NZ, have held their AGM today.

New chairman Peter Cosgrove said: “APN has had a mixed performance in the first quarter.''

APN's Australian regional media revenue was down 13%.

“The slowdown in the mining sector, declines in government spending and floods earlier in the year account for more than half the decline."

Cosgrove said their NZ operations had improved, with revenue declines slowing as the economy recovered.

In ARN CEO Ciaran Davis' AGM report he highlighted the following :-

• Growth in all key metrics – ratings, revenue, market share and profitability
• Improved results in 2012 continue into 2013
  – Quarter 1 revenue growth exceeding market
  – ARN now hold No. 1 FM position in 3 of 4 markets – Sydney, Brisbane and Adelaide
• iHeartRadio to launch in 2013 providing the company with an opportunity to deliver new audiences and revenue streams

With the following being outlined about TRN :-

• 2012 NZ radio market flat
• New CEO commenced Sept 2012 – driving change and focusing on ratings and revenue improvement
• Restructure of leadership team
• Recruiting high profile talent
• Investment in sales capabilities
• Relaunch of Radio Hauraki
• Positive signs of improvement – Q1 2013 revenue performance ahead of market with market share improvement

APN expect to reduce net debt by $40m to $50m in 2013 through organic cash generation, active management of the cost base and some asset sales.

Cosgrove said: “The board will continue to explore all options to strengthen the balance sheet and we are reducing debt.''

He finished the AGM by emphasising APN's priorities :-

• We are focused on reducing debt
• We will continue to reduce costs
• We are rejuvenating our products and identifying new revenue
• We are driving the performances of all our businesses, and
• We are connecting our audiences to our transactional businesses.

Cosgrove also said APN hoped to appoint two new board members before the end of the year and that the search for a new chief executive was progressing and an appointment would be made soon.

View the full presentation here.