World Audio comments on Branson speculation

World Audio has now issued a statement regarding the “recent media speculation” about interest from Richard Branson’s Virgin Radio group (see related radioinfo story).

The statement to the Stock Exchange said:


The company has sent information currently in the public domain in relation to its business plan and financial status to the Virgin Group. Sir Richard Branson’s office has contacted the company.

No specific discussions have yet taken place. The directors will inform the market on any further developments in this regard.

At World Audio’s Annual General Meeting today, Chairman Peter Solomon reviewed the company’s progress since the last meeting, discussing the recent capital raising; the formalising of Sydney and Melbourne licence acquisitions; the rollout of the AM network; marketing and studio development.

He also said:


“While we have achieved a great deal, there is still much to be done… moving our Western Sydney mast and transmitter… completing a state of the art studio… completing the rollout by 29 August 2004 of the balance of our 30 remaining licences… commercialise our network by engaging local and regional sales and marketing personnel…

“From an operations viewpoint, the Sydney radio advertising market remains extremely competitive and sales growth at 1611 remains sluggish.

If this persists it may well delay the timing of the anticipated monthly cash flow break even point. A review of staffing levels in October 2003 has resulted in a reduction of approximately $400,000 in employee costs which is part of a structural and operational review of the company…”