Prime Radio reports fall in earnings
The Prime Media Group has this morning announced consolidated earnings of $33.2 million for FY12, an increase of 22.1% on FY11, in what they describe as a challenging year.
Whilst the television assets performed well, Prime's radio assets have reported significant decline from the previous year.
Prime Radio operate nine radio stations in Queensland, in Cairns, Townsville, Mackay, Central Queensland and the Sunshine Coast.
The radio division has reported the following numbers;
- Radio revenue of $20.76m, down from $21.16m the previous year.
- EBITDA of $4.17m, down from $4.8m the previous year.
As a result of the weaker performance from the radio division, Prime have taken an impairment charge of $5.3m on the carrying value of the radio licenses in the group. This is the third impairment they have taken since acquiring the assets.
Prime Media Group CEO, Ian Audsley (left) commented;
"Management continues to look for new revenue opportunities and cost initiatives to improve the radio division's performance.
We remain committed to the radio business and are confident that its performance will improve with any positive change in the advertising market."
Prime went on to say that they expect continued fluctuations in radio revenue in local markets, and that visibility will continue to be poor for national revenue.
You can view the Prime Media investor presentation here.