Macquarie Media posts “disappointing” financials as earnings & revenue dip
Macquarie Media has posted its earnings for the financial year, with earnings and profit both down year-on-year.
The owner of radio stations 2GB, 3AW, 4BC and 6PR, as well as the Macquarie Sports network, has suffered through numerous legal battles this year.
It has also suffered from an advertising slow-down across the commercial radio market in general, as CRA reported a decline in ad revenue in Q2 earlier this week.
Macquarie reported revenue of $131.8 million for the year.
Net profit after tax fell 32.9% to $14.4 million in the year to June 30, while unearlying earnings before interest, tax, depreciation and amortisation fell 16.4% to $27.1 million.
“Whilst these results are within the range of our May 2019 guidance for full-year 2019 earnings (underlying EBITDA), we recognise that this outcome is disappointing for our shareholders,” admitted Macquarie Media CEO Adam Lang in a statement to the Australian Securities Exchange.
“The Macquarie Media strategy is to leverage our market leading audience into a greater financial return. We have executed significant changes to improve customer service to our audience and clients, and, ultimately, deliver a better return for our shareholders.”
Lang was upbeat however, when talking about news talk – a format which continues to dominate the radio ratings in Sydney and Melbourne, in particular.
“News talk is the foundation of our strength.”
“While advertising conditions remain subdued, we are encouraged by our audience growth, our improving capacity to engage advertisers and our continued drive for efficiencies.”
Macquarie Media’s controlling stake was acquired by Nine in 2018 when it merged with Fairfax Media.