Macquarie Radio Network (MRN), owner of 2GB and 2CH, has released its half year results for the period ending 31 December 2007. Revenue is up by about 3%, but profit is down by 19%, largely due to increased expenditure on digital assets, according to a company statement.
MRN reported an increase in ordinary revenue from operating activities for the half, up $630k (2.9%) to $22.747 million. Profit was $2.66 million, down 19%.
The company says the increase in gross revenue is primarily attributable to an increase in revenue derived from digital assets. The continued investment in digital assets also lead to an increase in pre-tax expenditure, up $1.53m (8.8%) to $18.94m.
MRN Chairman Max Donnelly says the Board is pleased with MRN’s overall revenue performance for the half year:
“Our core media assets, 2GB and 2CH, have again delivered consistent results to match their outstanding performance in the ratings. The NPAT of $2.66m is in line with our expectations. Macquarie Radio Network’s commitment to digital and new media investment is already delivering incremental revenue growth and we are confident of increasing future contributions to earnings.
“2GB has been Sydney’s number one radio station for 30 consecutive radio surveys and 2CH recorded strong results in the second half of 2007. The release of Nielsen Ratings’ survey one earlier this week saw 2GB dominate the ratings with a 14.3% share of Sydney listeners. The Alan Jones Show increased ratings share by 5% to 19.1% and the Ray Hadley Morning Show increased ratings by 2.9% to 17.8%. MRN now has commercial market share of 29.3% (2GB 21.1%)”
MRN has been a radio industry leader in developing news and sports web sites:
www.livenews.com.au was launched in September 2007 and in January 2008 achieved over 200,000 unique users to the site.
MRN has also launched, in time for the NRL season a comprehensive Rugby League site, www.rugbyleaguelive.com.au aimed at being the ‘site of choice’ for fans of the game. This site leverages the wealth and depth of league content across 2GB including Ray Hadley’s top rating Continuous Call Team.
www.2GB.com was also relaunched last year and is now a positive contributor to MRN’s earnings.
MRN declared an interim unfranked dividend of 1.5 cents. The record date for the interim dividend will be 30 April 2008 and the dividend will be paid to shareholders on 14 May 2008.