DMG Radio Australia profit up by 85%

DMG Radio Australia has reported an operating profit of £4 million ($7.2m), up by 85% on last year’s £2 million ($3.6m). Revenue was stable at £55 million ($99 million) with an operating margin of 7%. The results were finalised before the announcement that Lachlan Murdoch has bought a half share of DMG Radio Australia and were announced tonight in London as part of parent company DMGT’s preliminary results announcement.

Parent company Daily Mail and General Trust UK (DMGT) did not fare as well overall, with revenue declining by 8%, resulting in an operating profit of £278 million, down 12% on last year. DMGT paid a 14.7 pence per share dividend, the same as last year.

CEO Martin Morgan described trading conditions as “unprecedented,”saying the company has “actively defended profitability” with a “clear focus on fundamentals.”

The company’s annual report says DMG Radio Australia has “significantly
outperformed the radio
market,” which has
experienced a
decline of
4.6%.

DMG Australia’s underlying profitability increased
by 21%,
“reflecting
the
resilient
performance
in
attaining
revenue
across
the
eastern
states
as
well
as
a
successful
cost
reduction
program.”

Nova 969 Sydney increased
its revenue
share for
the year
from 14.4%
to 15.3%
in a
market
which
declined by 10.4%. Nova also
“performed
strongly
in
national
revenues
from
Sydney
on
to
other
Nova
stations.” Melbourne
experienced a
12.4% growth
in revenue.

The Annual report then explains today’s announcement that Lachlan Murdoch has bought half of DMG Radio Australia (see other story).