Macquarie earnings hit hard by one-off costs

The Macquarie Radio Network has announced their financials for the 12 months ending 31 December. The report shows that whilst revenue has increased by 2% to $29.9m, Net Profit After Tax fell 77% to $0.9m.

Macquarie has placed responsibility for the earnings decline on talent contract renewals, the 2CH relaunch costs, and costs of the Commonwealth Games.

The company also noted that there were significant costs incurred during the facilitation of the proposed merger with Fairfax.

Macquarie Chairman Russell Tate has warned investors that there are more costs associated with the merger to come; 

'We will continue during the second half of FY15 to incur one-off transaction costs to facilitate completion of the merger with Fairfax. Immediately following completion, in the last quarter of FY15, we will commence restructuring of the combined group which will also incur significant one-off costs, estimated at between $5m to $7m (realising) annualised cost synergies in the merged entity estimated to be between $10m to $15m by 30 June 2016.

Given the impact on earnings of these one-off costs, Macquarie has chosen not to pay a dividend for the half-year.