Jones comments cost 2GB $3-4m
The Macquarie Radio Network has released their full year statutory accounts to the market. Whilst the headline figures were made available earlier, the company has provided some more detailed commentary on the FY13 performance.
Chairman Russell Tate has noted that the comments made by Alan Jones about then Prime Minister Julia Gillard cost the company significant revenue;
In what was a flat Sydney radio market across the full year, we suffered a very significant hit to our revenues in the second quarter after comments made at a private function by Alan Jones resulted in a massive social media campaign against Jones and 2GB, and directed specifically at forcing advertisers to withdraw their support for the station.
We were forced to suspend all advertising in Alan Jones' Breakfast Show for a short period and estimate the full year revenue impact of this episode to have been between $3 to $4 million.
Tate also commented that the station failed to receive any positive revenue impact from the London Olympics and that the Sydney radio market has 'failed to gain any real momentum'.
The topline financials for Macquarie Radio Network were;
Reported EBITDA* $14.2 million (up 110% on pcp)
Underlying EBITDA$11.3 million (down 25% on pcp)
Reported NPAT** $9.1 million (up 302% on pcp)
Underlying NPAT** $6.7 million (down 24% on pcp)
With revenue impacted materially by the Jones situation, Tate summarised his commentary referring to the ongoing dominance of 2GB in Sydney;
Through these revenue setbacks, our program quality and integrity, and ratings dominance has been maintained.
That ratings strength, and in particular 2GB's dominance in the Sydney market, has us well placed to reverse the revenue setbacks of 2012/13, and to benefit from any lift in consumer and business confidence following the federal election.
You can read the full year statutory accounts for Macquarie here.