Macquarie Radio Network's (MRN) reported net profit after tax fell 62% to $2.3 million in the last financial year, hit largely by costs relating to its bid to buy Fairfax Radio and its divestment of flailing station MTR.
The company's core radio revenues, attributable to stations 2Gb and 2CH, fell 4% year-on-year to $52.6 million. In the Sydney radio market, the company's market share fell from 25.5% to 25%.
Reported figures include $5.5 million in operating losses and costs associated with MTR, a joint venture which the company walked away from in May, as well as transaction costs associated with its unsuccessful Fairfax Radio bid and its acquisition of Smart Radio Network.
If these figures are not included, the company's underlying net profit after tax was considerably higher at $8.8 million, down 18% on the previous year.
MRN executive chairman Russell Tate said: “MTR in Melbourne was always going to be challenging, but by late 2011its financial performance and the relationship with our joint venture partner has reached a point where it was clearly unsustainable and we had no choice but withdraw funding.”
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