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Friday, 05 December 2008

Austereo tunes in 5.1% profit rise

25/08/2008 10:06:40 AM.  | Helen Schuller

Austereo Group Limited (AEO) said full year consolidated net profit attributable to members rose 5.1% to $48.82 million. The radio broadcaster said it was uniquely placed, through its current leading ratings and sales share, to capitalise on future advertising market uplift.

The result was on par with consensus estimates from nine investment banks, which had forecast net profit of $49 million.

The owner of the Triple M and Today Radio Networks posted a 4.6% lift in revenue to $266.7 million to June 2008.

Chairman Peter Harvie said consistently strong audience ratings and sales shares, along with cost management initiatives, led to a solid FY08 outcome with EBITDA margin improving to 35.5% from 34.6% a year before.

"Year on year, the group grew in all key measures and the expanding cross-platform transition is one of the most successful in the media category," Mr Harvie said.

For the half year ended December 2008, the company forecast that capital city radio growth would be in positive territory, in a range below 3%.

Chief executive Michael Anderson said Austereo was uniquely placed, through its current leading ratings and sales share, to capitalise on future advertising market uplift.

Mr Anderson said that interactive opportunities were now opening up new horizons for audience reach and advertising responses.

"In the past year, combined radio and online advertising campaigns have almost doubled," he said.

"We are also now prepared for the impending launch of digital radio which will further enhance the medium," he said.

In June, iPod downloads from Hamish & Andy, exceeded half a million. Melbourne's FOX FM won the highest audience in Australia, with Sydney's 2 DAY FM achieving second place.

Costs growth for the period, excluding revenue related and depreciation, was held at 3.4%, while earnings per share increased 9.3% to 13.93cps.

Austereo's leading share of capital city audience rose to 22.9% and under 40 audiences increased to 34.2%.

Total capital city radio industry advertising revenues rose 5.6%.

The company increased its final dividend to 6cps, up from 5.2cps. This took the total franked dividend to 10cps, up from 9cps.

At 1005 AEST,  Austereo was trading down 4c at $1.50.  

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