Macquarie Media struggles in a difficult market | radioinfo

Macquarie Media struggles in a difficult market

Wednesday 07 August, 2019

Macquarie Media Limited's group revenue for the last financial year was down 3.3% to $131.8 million with the company stating that the NSW and federal elections, a subdued housing market and variable business and consumer confidence impacted on the year's earnings.
 
Advertising and digital revenue was down to $117.8 million from $121 million in last year, but Macquarie Media CEO Adam Lang says: "While advertising conditions remain subdued, we are encouraged by our audience growth, our improving capacity to engage advertisers and our continued drive for efficiencies to deliver a strong return for shareholders in the financial year 2020,"
 
In May this year, just before re-signing Alan Jones, Macquarie advised stockholders that the full year EBITDA result was expected to be reduced  from $29 - $32 million down to $27 - $29 million.
 
The final figure was $27.1 million, down 16.4% or $5.3 million on FY18 and Lang says "Whilst these results are within the range of our May 2019 guidance for full year 2019 earnings ... we recognise that this outcome is disappointing for our shareholders.”
 

 

  

Adam Lang's message in the annual report reads:
 
Whilst these results are within the range of our May 2019 guidance for Full Year 2019 earnings (underlying EBITDA), we recognise that this outcome is disappointing for our
shareholders.
 
The Macquarie Media strategy is to leverage our market leading audience into a greater financial return. We have executed significant changes to improve customer service to our audience and clients and, ultimately, deliver a better return or our shareholders. This strategy continues to be the primary focus of our daily operations.
 
News Talk is the foundation of our strength. The twelve months to 30 June 2019 featured the delivery of sustained audience leadership by our top rating News Talk stations 2GB in Sydney and 3AW in Melbourne. 4BC has earned its best audience results since 2011 and 6PR has proven to be capable of leading the Talk radio audience in Perth. Compared to the previous Financial Year, the average audience for our News Talk network has grown over 5%.
 
Our Macquarie Sports Radio network has evolved continually throughout the financial year to earn the engagement of a new audience of sports fans. In calendar 2019 we have grown the cumulative audience by 64%. Versus the same time last year, the average audience for our combined News Talk and Macquarie Sports Radio is up 4.8%.
 
We are delighted to acknowledge the strong performance of our presenters, program and news teams in achieving these results and are determined to build on that success in the Financial Year 2020. In the Financial Year 2019, our Sales team has been dedicated to delivering a strong return to advertisers by connecting our large and affluent audience with an increased range of solutions on our broadcast and digital assets. Our News Talk network of stations continues to show mass audience reach and powerful engagement for clients. On Macquarie Sports
Radio, we are able to demonstrate the commercial benefit to advertisers of connecting with complementary and cross promoted audiences through our targetted sports commentary and coverage.
 
While advertising conditions remain subdued, we are encouraged by our audience growth, our improving capacity to engage advertisers and our continued drive for efficiencies to deliver a strong return for shareholders in the Financial Year 2020.
 
 

 
 

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3 Comments

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Howie Bow
8 August 2019 - 2:00pm
They overspent on that cartographer.
Anthony The Koala
8 August 2019 - 11:21pm
Four remarks:
(1) According to MRN's data at 2300, 8/8/2019, the return on dividends is earnings/close price * 100 = 0.053/1.745 *100 = 2.43%. Better than term deposits. Source https://www.asx.com.au/asx/share-price-research/company/MRN/statistics/shares
(2) The external uncontrollable factor - revenue. Despite MRN being a market leader, and a market leader means it can charge more for advertising does not translate to getting the maximum revenue. Revenue fell 3.3% ((136351-131843)/136351*100). There must be reasons. The first paragraph does not really explain why businesses have reduced expenditure.
(3) The internal controllable factor - expenses. I have said elsewhere, there is nothing wrong with containing expenses even if the business is viable and profitable. Expenditure was reduced by 3.5% (396/114492*100).
(4) In the 2nd paragraph of the abovementioned CEO's report, the CEO did not elaborate on the nexus between the strategy of audience listenership and leveraging of the audience into a greater financial return. If I tune to an MRN station via the radio (AM or DAB+) or IP streaming, how is leveraging the listener into driving more revenue going to be achieved?

Thank you
Anthony of Belfield
jonoburggraaf
16 August 2019 - 5:23pm
Hi All,
Because Macquarie isn't doing very well,i think they should get rid of Macquarie's Sport radio station in Melbourne that replaced Magic 1278.Magic was a great station and lots of people liked listening to it, particularly older people as they liked the music. Magic is really missed and I think that now would be the perfect opportunity to bring it back.
From Jono and ben
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