Radio prank hits bottom line
Southern Cross Austereo lifted full year net profit but radio scandals involving its DJs have weighed on ad revenue.
The TV and radio broadcaster increased net profit by 1.2 per cent to $96.1 million for the full year to June 30.
That was slightly ahead of previous guidance of $90 million to $95 million.
However, revenue fell 6.5 per cent to $642.6 million.
That included a fall in its metropolitan business revenues of 4.0 per cent to $262.5 million.
It blamed falling radio advertising revenues on scandals involving Kyle Sandilands and what it called the “UK incident”.
Austereo suspended all advertising on 2Day FM after the scandal involving the suicide of British nurse Jacintha Saldanha, 46, who was taken in by a prank call involving presenters Mel Greig and Michael Christian who phoned a hospital where Prince William’s wife Kate Middleton was staying.
Chief executive Rhys Holleran said the advertising market was difficult and not getting any easier.
“Yet we have delivered a commendable result on the back of a resilient radio business, with dedicated commitment from our people who perpetually seek better ways to do things,” he said.
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“Whilst we continue to operate in changing and uncertain economic conditions, we are steadfastly committed to strengthening our engagement with our fans through innovative content development, leveraging the substantial digital footprint we have built and relentless focus on operational improvement.”
The profit was boosted by it collecting $10.4 million for the sale of two radio licences in Queensland.
The group declared a final fully-franked dividend of 4.5 cents per share, down from 5.0 cents last year.
