What's New February 21, 2014

SEN drives profit growth for Pacific Star

The Pacific Star Network (PNW) is the latest listed media company to release their results to the market. PNW (CEO Barrie Quick at right) operates SEN and MyMP; two AM radio stations in Melbourne, and Inside Football magazine.

PNW has announced that in the 6-months to 31 December it recorded EBITDA of $0.99m, an improvement of 31% on pcp.

Revenue was flat on pcp at $7.7m, whilst expenses fell 3.4%.

Chairman Andrew Moffat commented:

"In the radio division, the first trading quarter got off to a strong start and it was pleasing that SEN recorded it’s highest ever trading revenue of $1.5 million for the month of September, however, with the uncertainities brought about by the Federal election and its impact on business confidence, this influenced our second quarter revenue and results for that period were disappointing.

"Overall, revenue was flat for the first half but the division delivered an improved EBITDA result of $1.24 million, up 19% on the comparative period (2012: $1.04 million).

"This improved result was achieved by reducing operating costs and curtailing trading losses in the MyMP radio station."

The company has noted that consumer and business confidence is subdued and it is difficult to predict trading conditions; however PNW forecasts a full year EBITDA position of $1.6-1.9m. In FY13 the company achieved EBITDA of $1.57m.

Pacific Star has seen a rally in its share price over the past fortnight, and investors will be buoyed by two comments in the report;

Firstly, that PNW has cash reserves of $4.1m and is intending further announcements to enhance shareholder value in the near future.

Secondly, that the company anticipates that dividends moving forward will be either partially or fully franked, until this time there has been no franking credits applied to PNW dividends. In todays release the company has announced a dividend payable of 0.7cps, with no franking.

In early afternoon trade Pacific Star's share price was unchanged at 27c.

pic: SEN Breakfast Hosts, Andy Maher and Andrew Gaze.