Earnings slip at Sea & Mix on the Sunshine Coast
Oceania Capital Partners, the parent company of EON Broadcasting on the Sunshine Coast, has released its preliminary final report for the (South African) financial year.
EON Broadcasting is owned jointly by Oceania and Glenn Wheatley and operates Sea FM and Mix FM.
The radio division has reported revenue for the full year of $7.1m, and EBITDA of $1.97m.
At the time of the sale by Southern Cross Austereo, the Financial Review reported the stations were writing $3m in EBITDA.
In a statement, the company said that revenue and earnings had been adversely impacted by management's focus on executing the separation process from Southern Cross Austereo, delaying a number of sales initiatives.
EON Managing Director Robert Moran said the stations had suffered from a decline in both national and local revenue, however he was confident that the stations were well positioned for a strong FY15:
"For the first half trading we reported that the SCB business had increased revenue by 3% (on pcp). This increased performance did not continue into the second half, with the second half revenue coming in at an 8.5% deficit to the previous corresponding period. For the full financial year, therefore, Sunshine Coast Broadcasters saw an overall 3% decline in revenue in FY14 as compared to FY13.
While no decline in revenue year on year is positive, the decline in revenue in this case from $7.1 million in FY13 to $6.9 million in FY14, represents a $200,000 decline in a year that was adversely affected by volatile trading conditions through the federal election period and a period of lacklustre economic performance in the months that followed.
The second half revenue softness was equally experienced at the local sales level and the national sales level. There were a number of internal matters which contributed to the local sales deficiency which have now been addressed. However, the business remains exposed to national sales revenue, which is dependent on the Southern Cross Austereo relationship.
The Sunshine Coast Broadcasters stations have made a number of very positive steps forward and the enthusiasm and drive within the business is at a very pleasing level.
Sunshine Coast Broadcasting is taking its format more local on its 92.7 MixFM station having recently secured the services of the broadcasting team known as Todd and Sami (right), who are very popular on the Sunshine Coast, to create a new, exciting, local weekday Drive show (3pm to 7pm each weekday).
With this very welcome addition, 92.7 MixFM will be broadcasting local all day, starting with market leading and iconic Mark and Caroline for Breakfast from 5am, live and local throughout the day with Lyndon and Tim, and then Todd and Sami will bring you home until 7pm.
The rising stars on the Sunshine Coast are our 91.9 SeaFM BarRat and Jess Breakfast team (left). 91.9 SeaFM focuses on the under 40 demographic and matches the lifestyle of the Sunshine Coast of sea, surf and sun. The programming strategy for SeaFM combines significant locally produced content to produce the SeaFM feeling, as well as taking some of the country’s leading radio personalities (including Hamish & Andy, Dan & Maz, Kyle & Jackie O and Angus O’Loughlin of The Bump) to produce an unequalled blend of entertainment, humour and music."
Moran went on to say that Oceania believe the outlook for Sea and Mix is positive and that they are looking for additional radio stations to acquire under the EON umbrella.