Macquarie Radio Network expects a hit – 65% drop in Net Profit
Macquarie Radio Network (ASX: MRN) have just released a company update to the market.
They report a drop of around 25% in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for the half year ended 31 December 2014 as compared to the prior corresponding period.
Abnormal charges of around $2 million for the half year are expected to reduce reported EBITDA by around 56% as compared to the prior corresponding period. Underlying net profit after tax (NPAT) is expected to drop by 28%, whilst reported NPAT is expected to drop by 65% as compared to prior corresponding period.
MRN Executive Chairman, Russell Tate has commented: “that revenue gains of 3.7% from Sydney radio operations were outweighed by operating cost increases, in particular by costs associated with the relaunch of 2CH, costs associated with restructuring of the company’s sales force, talent contract renewals, and increases in administration costs.”
MRN have also noted that they had cost increases with the recent proposed merger with Fairfax Radio Network during the period. You can read more about the progress on the merger here.
Today’s announcement is based on unaudited management accounts. MRN is scheduled to announce its half year results for the period ended 31 December 2014 on February 18.