Metro Radio Continues to Out-Perform Traditional Media Rivals
The substantial number of on-air line-up changes in metropolitan radio, particularly amongst the top-rating breakfast teams in the Sydney market, which will commence in early 2014 may well have significant financial implications for the major commercial radio groups. It is therefore useful to review the financial performance of those commercial radio groups in year ending June 2013, prior to those major programming changes coming into effect.
Metropolitan commercial radio has been, and continues to be, a solid financial performer during periods of subdued economic activity, as evidenced by the sector’s superior performance to that of its larger traditional media rivals in the most recent fiscal year ending June 2013.
This is one of the main conclusions of the latest annual survey of metro commercial radio performance undertaken by Global Media Analysis (GMA). The GMA survey is based on an assessment of the reported results of five of Australia’s six major commercial radio groups (dmg radio is not included in the survey because it does not publicly reveal its financial performance).
Although its revenue and profit growth was modest, comparatively speaking metro commercial radio’s financial performance last year was still significantly better than that of its main media rivals. For example, metro radio’s slender 0.4% increase in advertising revenues in 2012/13 was nevertheless better than the 2.2% decline in metro television ad revenues and much better than the high teen percentage declines in ad revenues experienced by metropolitan newspapers over the same period.
GMA’s assessment shows that during the year ending June 2013, the five surveyed metro radio groups in aggregate managed to modestly increase total revenues and profits and also to improve profit margins despite a difficult economic environment and a sluggish advertising market.
Importantly, GMA’s assessment also shows that over the past five years commercial metro radio has been much more successful than its larger media rivals at limiting the volatility in revenue and profit growth which adversely impacted on the overall media industry as a result of the Global Financial Crisis (GFC).
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