Pacific Star's 36% profit increase | radioinfo

Pacific Star's 36% profit increase

Thursday 18 September, 2014

Pacific Star Network's recorded a profit before tax of $1.45 million, up 36.7% on the previous year, according to its annual report, released today.

The result was achieved through "tight cost management resulting in a 1.6% reduction in day to day operating costs over the period."

A strong EBITDA result of $1.87 million was achieved, up 19.1% on the comparative period (2013: $1.57 million). This result was at the top end of the earnings guidance of $1.6-$1.9 million.

Full year revenue increased by 1.1% to $15.23 million. Operating costs were $13.8 million, down 1.6% on the comparative period.

Operating cash flows of $2.17 million increased by 11.8% on the comparative period.

Other highlights included:

The Melbourne metropolitan broadcast advertising market grew 1.7% to $211 million for the 2013-14 financial year and Pacific Star radio stations continued to maintain a 6.5% share of this market.

The company launched a three year capital expenditure program to invest over $1.0 million in upgrading, maintaining and protecting key infrastructure assets.

Digital radio celebrates five years on air this month. Nearly 1.6 million DAB+ digital radio devices have been sold since launch. The Company continues to invest and promote digital radio through its 18.2% shareholding in Melbourne Digital Radio Broadcasting Pty Ltd.

Commenting on future earnings, Chairman Andrew Moffat said: "In an environment of declining consumer confidence and negative predictions on future advertising spending, there is no doubt that we are operating in a highly competitive market. Notwithstanding this, our view is that the core business will continue to grow organically with single digit growth in revenue."

The company declared an unfranked final dividend of 0.9 cents per share maintaining the full year dividend of 1.6 cents per share.

The annual report, released today, is at this link.

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