Fairfax Radio earnings fall by 26%
The Fairfax Media Group has released their financials to the market today, including a breakdown of the performance of the radio division.
The overall performance by Fairfax Media was strong, with the company turning a $16.4m loss in FY13 into a $224m net profit in FY14. This was boosted by the sale of some non-core assets.
However the story is less positive for the radio division. Overall revenue was down 6% to $103.8m, whilst EBITDA fell by 26.2% to $13.9m, with 3AW Melbourne and 96FM Perth again the standout performers.
Fairfax Chief Executive Greg Hywood (pictured) said:
“Radio experienced a decline in revenue of 6% for the year which was disappointing.
There has been significant talent churn in the industry in the last six months. We have strengthened our line-ups. Our offering has been refreshed at five of the seven stations.
Sales teams have been restructured to have a national focus resulting in new sales leadership in Brisbane, Sydney and Melbourne. Melbourne’s 3AW and 96fm in Perth continue to have strong ratings and audience share.”'
The report went on to note that the 6% full year decline was particularly significant in the second half of the financial year where revenue was down 10.9%. This was in the context of the metropolitan radio advertising market growing across the financial year by 2%.
Below is the segment result financials for the Fairfax group as a whole, and the breakdown of the radio performance.