MRN QLD regional network sale ‘probable’
The Macquarie Radio Network has announced it’s FY15 financial report this morning, reporting revenue of $97m and EBITDA of $7m.
It is difficult to draw any significant conclusions from the financials themselves as the report includes 9-months of MRN as a stand-alone entity, and 3-months of the combined results.
MRN Executive Chairman Russell Tate has noted this in the release, saying that the FY15 results should be viewed in isolation;
“There is very little that can be taken from these results as a pointer to the future performance of the Company. We were able to commence implementation of many of the changes immediately after the merger was completed on March 31, and to begin the new financial year well on our way to realising our synergy targets”.
Tate went on to say that already the combined entity has realised $10 million in cost and operational synergies, and the associated one-off costs have been recognised in FY15.
“Further significant cost and operational synergies will be realised in FY16, and we are now starting to see revenue synergies from our national network of stations and the greatly enhanced sales opportunities the network presents.
Our early progress in identifying and realising both cost and revenue synergies makes it already clear that MRN’s earnings potential, both short and long term, exceeds the sum of its previous parts.
At this stage we believe FY16 earnings (EBITDA) will fall in the range between $20 million and $25 million. The rate at which we are able to convert the revenue potential of our network will be the key determinant of MRN’s earnings growth and trajectory.
Reaction to date from clients and media agencies alike to the reach and share of audience our national network now offers, together with increasing recognition of the marketing appeal of the 40-plus demographic which we dominate, gives us great confidence that we can significantly increase our share of overall radio spend over the next 2 -3 years.”
The financial report outlines the groups assets which include not only the radio stations but also;
“A public relations agency, a company responsible for syndicating programming content, a music distribution business and also produces digital and online media through its websites”.
The report lists Macquarie Regional Radio as a discontinued operation saying;
“The business of Macquarie Regional Radio Pty Ltd is also being actively marketed and the sale is highly probable. (The business is) therefore presented as (a) discontinued operation”.
There is no mention of 2CH being regarded as a discontinued operation, and no update on the sale process of that station.