HT&E’s radio revenue up 3.5% as operating costs increase

HT&E has released its 2018 financial report at the company’s AGM.

CEO and managing director Ciaran Davis addressed shareholders at the AGM, reporting that HT&E radio revenue grew by 3.5%.

Revenue for ARN on its own was $235.5 million, up 3%.

However, EBITDA increased just 1% to $80.5 million, stemming from an increase in operating costs.

Looking at Q1 of 2019 on its own, Davis revealed that ARN revenue had fallen 5%, and said that he expects H1 revenue to be 2-3% behind the previous year.

Davis outlined how the sale of Adshel had been used to repay drawn debt, and was excited to reveal that HT&E “is now net cash after years of talking about debut metrics”.

He also spoke about the growing importance of ARN to the business, with the radio network now making up 87% of revenues.

“Radio remains very resilient and relevant and ARN is performing well growing audiences in fact, ARN had its highest share of network ratings in its history in 2018,” he said.

“Our primary brands of KIIS and Pure Gold broadcast to 25-54 year olds and we continue to recruit and retain the best talent in Australia and beyond. In 2018, we made some significant changes to our line up and these shows are starting to resonate and build momentum.

“Live, local and free content is the heartbeat of good radio. Particularly at breakfast where we the Number 1 media channel of choice, including social media, for reaching Australians because companionship and trust delivered from personalities our audiences know and love are the key drivers of radio engagement and our business is multi-platform.”

Davis also outlined the significance of iHeartRadio, podcasting and smart speakers to ARN, as well as why digital platforms including DAB+ are extending, not disrupting ARN’s reach.

The full AGM presentation can be viewed here.