World Audio has reported a loss of $8.5 million after taxes, compared with last year’s loss of $397,000.

The company has been in an expansionary phase over the past 12 months and is also embrioled in a messy court battle over the right to operate the 1611 Sydney AM licence.

Operating revenue was $497.169 resulting in an operating loss, before tax provisions, of $3.7 million. No dividends were paid.

In the accounts the company wrote off $4.8 million in goodwill
because operations were unprofitable and advertising revenue was lower than
expected.

Advertising revenue in the second half of the financial year was about 3 times higher than the first half, indicating some prospect of a positive future if the copmpany can ride through its current expansionary phase.

The court battle with GB Radio over the ownership of a Sydney licence has been before the NSW Supreme Court and is currently under deliberation.

Another operator, thought to have been authorised by GB Radio, was also recently broadcasting on the 1611 frequency, causing interference to the World Audio transmissions. An injunction was gained to stop other broadcasts on that frequency until after the court case.

The station is licenced to serve a radius of 10 kms and operates on 400 watts.