Macquarie Media has defied challenging market conditions and a fourth-month absence of its most prized radio shock jock, Alan Jones (pictured above), delivering solid profit growth for the last financial year.
In an announcement to shareholders, Macqurie revealed its profits after tax grow by 21 per cent in FY17 to $17.3 million, while revenue slipped 2 per cent to $131.1 million, which it noted was largely the result of reductions in royalty and contra revenues compared to the prior year.
“Macquarie’s FY2017 core radio revenues were flat against prior year. National metro market radio revenues were marginally down for the first time in many years,” the company said.
“Revenue share [was] maintained despite challenging market conditions, [the] absence of Alan Jones for four months, [the] launch from standing start of Talking Lifestyle format across three of our stations, and regaining control of [our] Perth sales force only in the second half of the year.”
Jones stepped away from the microphone last summer to have a series of operations on his back and neck.
Macquarie’s EBITDA increased by 17 per cent to $29.45 million in the 12 months to 30 June 2017.
The company noted that its FY17 earnings were double the combined earnings of Fairfax Radio Network and Macquarie Radio Network prior to the merging of the two companies in April 2015 to form Macquarie Media Limited.
Macquarie’s EBITDA was 97 per cent higher, and its profit after tax was 132 per cent higher, in FY17 compared to when Fairfax Radio and Macquarie Radio were audited separately three years ago.
The company’s full-year results exclude the earnings of Satellite Music Australia, which was sold for a cash consideration of $5.9 million in July.