What's New August 29, 2012

Pacific Star report $1.2m profit

After a year where they were mainly in the news for all the wrong reasons, as one half of the failed MTR venture, the Pacific Star Network (PNW) has released their preliminary final report for FY12 this week.

PNW operate Melbourne sports/talk station SEN, music station MyMP and late in 2011 acquired the magazine 'Inside Football'.

The numbers for the overall business, in a difficult market, are moving in the right direction. Revenue overall was up 11% to $14.6m, with earnings of $1.2m, a signficant improvement following the loss reported in FY11.

As would be expected, the bulk of the revenue was written onto SEN, which achieved revenue of $12.8m and earnings of $1.7m.

PNW Chairman Andrew Moffat (left) commented in the report on the very public demise of MTR, and how the business had handled the issue;

"The MTR business failed and Pacific Star Network and Macquarie's relationship deteriorated as both parties failed to agree on the management of the business going forward……This development resulted in a number of disputes and claims between the joint venture parties and left Pacific Star Network in the unenviable position of having to deal with the sudden 'off-air' of MTR"

"We are proud of the manner management handled themselves and negotiations in extremely difficult circumstances and in minimising the financial and reputational fallout".

See our earlier opinion piece on the demise of MTR here.

It should be noted that PNW gained control of Inside Football on 1 December 2011 for $795,000 and for the final 7 months of FY12 the publication contributed earnings of $58,000 to the parent.