ARN and Nova Shine as Austereo Fades
Calendar 2014 was a year of above average growth in aggregate revenues and operating expenses, but slightly reduced profitability, for Australia’s three commercial metropolitan FM radio groups.
The Australian Radio Network (ARN) and Nova Entertainment (Nova) each enjoyed solid increases in both revenues and profits, while CY2014 was yet another year of worrying financial decline for the faltering metro radio operations of Southern Cross Austereo (Austereo).
Aggregate total revenues of the three metro FM groups rose by 6.5% in CY2014. That was the result of strong growth by ARN (up 18.2%) and Nova (up 15.2%) more than offsetting a 6.0% revenue fall experienced by Austereo.
Over the past three calendar years, ARN and Nova have increased their total revenues by 35.8% and 35.0% respectively, in large part at the expense of Austereo whose revenues have declined by 17.3% over that same period.
Whereas Austereo’s radio revenues had been more than double those of either ARN or Nova in CY2011, by CY2014 they were only 28% greater than those of the former and 35% higher than those of the latter.
Given that each of the three metro FM groups had virtually identically sized average 10+ listener numbers during CY20141, it will be interesting to see whether Austereo will be able to maintain its recent and historical disproportionate share of revenues into the future.
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