Prime Media Group has written down the value of its Queensland radio stations in its half yearly results today, shaving $15 million from the value of its radio licences.

The company posted a 71% decline in profit after the write down. The bad profit number is a result of the statutory Stock Exchange reporting requirements, which have to take into account the value of the book transaction that decreased the value of the radio licences.

If the abnormal write down is taken out, the company reported a profit increase of 21% ($19.4 million) on the previous corresponding period in the six months to December 31.

Earnings before interest, tax, depreciation and amortisation was up 4.2% to $35.3m. Group revenue of $144.1 million grew by $5.4 million or 3.9%.

Prime Media Group CEO Ian Audsley said: “We’re very pleased to deliver this core earnings result  in a  highly competitive and challenged advertising market.”

Prime Radio continues to “battle difficult trading conditions in a weakened Queensland economy,” he said.

Total radio advertising revenue of $9.2 million was down $957K or 9.4% on the previous corresponding period. EBITDA of $1.9 million was back $638K or 25.2%.

Audsley said: “Upon reviewing the future cash flows of the radio business, the Board of Directors has taken the decision to impair the carrying value of the business by $15 million.

“This non-cash accounting charge reflects the uncertainty in the regional Queensland radio market due to the lingering effects of three natural disasters in the past two years, mining job losses and the reduction in both federal and state government advertising. Combined with the fact that the full impact of recent significant flooding in central Queensland coastal markets is yet to be fully understood and the potential for further such occurrences in the future, the Board believes the impairment is prudent.”

Core Earnings Per Share of 5.3 cents is 20.4% up on the previous corresponding period.

For the company’s full results presentation, click here.