Metro Radio 2012 Financial Results Round-Up
Despite a challenging media environment, metropolitan radio appears to have delivered a reasonable financial performance in the year ending 30 June 2012. During that period, metro radio’s total revenues declined by about 2% while earnings fell about twice that rate leading to slightly reduced, but still very impressive profit margins of 29% for earnings before interest tax and depreciation (EBITDA) and almost 27% for earnings before interest and tax (EBIT).
These were the principal conclusions of a reporting season review undertaken by Global Media Analysis (GMA) which examined the financial performance of the metro radio operations of five listed public media companies, those being: Southern Cross Austereo (Austereo); APN News & Media (the Australian Radio Network); Fairfax Media (Fairfax Radio); Macquarie Radio Network; and Pacific Star Network. With the notable exception of DMG Radio Australia, a private company which does not publicly report its financial results, the five companies examined by GMA account for the bulk of metro commercial radio station numbers, revenues and profits.
As with total metro radio advertising revenues which in aggregate declined by 0.5% the year ending 30 June 2012, growth in total revenues for the five metro radio groups over the past five years has been both volatile and below longer term trend rates, in the wake of the Global Financial Crisis of late 2008.
After falling by 3.2% in 2009, total revenues of the five metro radio groups increased by 3.4% in 2010 and 6.1% in 2011, before declining by 2.3% during the year ending June 2012.
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