The music media and tech group’s aggressive acquisition strategy, which has seen the likes of Mediaweek and Concrete Playground join the fold, is heading into a period of integration, but questions remain whether it can return to profit anytime soon.
Vinyl Group has concluded the acquisition of city guide Concrete Playground in a deal worth up to $5.5 million. The news arrived shortly after Vinyl Group revealed that it made a loss of $6.8 million in the first half of FY25.
The popular digital city culture guide, which covers Sydney, Melbourne, Brisbane, Auckland and Wellington was acquired for for $4.06 million in cash and $1.5 million in Vinyl Group shares, with a net cash outlay of $3.28 million.
Vinyl Group said that Concrete Playground’s “high-quality lifestyle content and engaged audience” will complement Vinyl Media’s strategy by tapping into a similar agency network, yet serving a distinct set of clients and briefs. It believes this will “unlock new commercial opportunities for the company”.
As part of the deal, Concrete Playground’s founder and CEO Rich Fogarty will leave the business.
Concrete Playground generated more than $4.1 million in unaudited revenues in the past twelve months, and Vinyl Group has forecast the business will contribute at least $1.5 million in earnings (EBITDA) in 2025.
This would require a substantial lift in margins from 2024; Concrete Playground reported net profits of $112,000.
“This acquisition strengthens our media division and unlocks new opportunities for our advertising partners, all while accelerating our timeline to sustained profitability. We’re excited to welcome the team to Vinyl Group and look forward to unleashing our potential together,” Vinyl Group chief executive Josh Simons said.
Vinyl Group’s growth spurt has been nothing short of remarkable in the past year.
In February 2024, it acquired leading youth publisher Brag Media, the publisher of Rolling Stone, Variety and a host of others, in a deal worth up to $10 million ($8 million in cash plus north of $2 million in performance related cash or stock).
This was followed in September by trade media title Mediaweek ($497,140 in cash and $500,000 in shares) and events business Funkified (a deal worth up to $2.5 million) and Serenade Sound (a deal worth up to $2.3 million).
According to Vinyl Group’s half yearly report, Brag Media contributed a loss of $1.29 million in 2024, Mediaweek contributed a loss of $134,866 between September 2024 to 31 December 2024, Funkified has lost $70,930 and Serenade Sound booked a loss of $83,566 in the short time it has been with Vinyl Group.
All of these businesses realise revenue seasonally, and Vinyl Group stated it will be looking to drive further efficiencies and using AI technology to “significantly enhance our content output” and reduce “the cost of user acquisition”.
Vinyl Media has secured an exclusive advertising representation agreement with Genius for Australia and New Zealand.
In his CEO’s letter of the half yearly report, Simons said: “We are focused on refining our portfolio, unlocking new opportunities for our sales team, and challenging every component of our business to operate as efficiently as possible.
“Our next phase will be centred on scaling profitably, improving margins, and continuing to execute strategic partnerships that enhance our competitive edge.
“There is a second stage of the integration process that goes beyond the initial cost savings and small wins: a deeper dive into the real opportunities and synergies that can be unlocked within our suite of brands and services that comes from the experience of operating the various units together.”
Vinyl Group is currently locked in a court battle with the former owners of Brag Media over its performance related payout.
