Prime release FY12 official results
A few weeks ago Prime Media released their preliminary FY12 annual report, and have now submitted the final report to shareholders.
The Prime Radio division had a tough year, with earnings well down on FY11. Prime Radio reported EBITDA of $4.1 million in FY12, down from $4.8 millon in FY11.
Following the performance, Prime took an impairment charge of $5.3 million against its radio assets, meaning they now value the assets at just over $40 million.
Between 2005 and 2007 Prime purchased the 10 Queensland stations for total consideration of just over $70 million, indicating a writedown in value of $30 milllion on the assets since Prime Media entered the radio sector.
Prime Chairman Paul Ramsay commented on the radio groups performance;
'Prime's radio division struggled to match the previous year's performance due to difficult market conditions. It nonetheless continues to be a good contributor to group earnings."
"The Company booked a $5.3 million impairment charge for radio intangible assets due to continuing uncertainty in the regional Queensland advertising market."
"We remain confident of the radio business' ability to improve its contribution with any strengthening of the advertising market and the Queensland economy generally".
Chief Executive Officer of Prime Media, Ian Audsley (pictured) said of the radio division;
"The radio business impairment was the result of persisting weak consumer sentiment and softening advertiser confidence in regional Queensland."
"The advertising market in Queensland continues to be difficult as a result of the higher Australian dollar and its negative impact on tourism, cost of living increases in markets hosting the mining industry and the lingering effects of last year's floods and tropical cyclone".
"More recently the change in state government and a subsequent reduction in government advertising spend has further weakened confidence".
The consolidated Prime Media group reported a strong profit performance off the back of its television division.