RG Capital profits up in half year result | radioinfo

RG Capital profits up in half year result

Friday 21 February, 2003

RG Capital Radio has made a half-year profit after tax of $5.1 million, an
increase of 17.5% on the comparative 6-month period last year. Sales
grew 10.0% to $33.8 million.

The good figures reflected RG's share of joint venture revenue as well as revenues from all its wholly owned stations.

Executive Chairman Tim Hughes said: "When you consider the difficult environment in
Regional Australia over the last 6 months we are particularly pleased
to be delivering such a robust result. National sales increased 7.09%
and local sales grew 10.5%. Total revenue was up 9.9% for the half. We are encouraged that the positive trend has continued into January
and February."

Despite the drought and war fears, growth over the last 8 months has been driven by
"strong domestic tourism and retailing down the east coast of
Australia".

Managing Director Rhys Holleran explains:
"Due to our geographic spread, very good growth in provincial and
coastal markets has more than compensated for our inland markets
which have been negatively impacted by drought and bushfires.
Operational efficiency and cost controls have also helped increase
EBITDA from, $9.6 million last year to $10.9 million for the 6 months
to December 2002."

The company's interim fully franked dividend has been increased from 4.5 cents last
year to 6 cents this year payable on 17th March, 2003.

The financials show:

Revenues from ordinary activities earned $30.5 million this year, compared with $29.5 million in the equivalent period last year.

Expenses from ordinary activities were $22.02 million compared with $21,54 million in the equivalent last half.

Joint venture net profit is starting to kick in this year for RG with Share of net profit from joint ventures growing to $940,000, compared with $370,000 previously.

Staff costs were RG's biggest expense item, with the company spending $11.4 million on staffing, slightly up from $11.0 million the equivalent previous half year.

The company is in a very healthy financial position with total assets of $182.2 million and no borrowings. RG Capital paid $1.9 million in tax in the period.

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