ARN Media, with a sales team nimble and responsive in a short advertising market, has managed to hold on to its revenue base.
Operational revenue in the half year to June was up 1% to $168.1 million but net profit after tax was down 90% to $5.4 million, slapped by costs associated with the bid for competitor SCA.
In a challenging market, the broadcaster is extending cost cutting. Total people and operating cost growth is being kept to between 2% and 4%, delivering $6.5 million permanent cost out in 2024. And a new efficiency review is targeting $5 million to $10 million over two years.
“Solid results achieved in a challenging market,” according to CEO Ciaran Davis.
“I think there's an expectation that radio is not performing as well as an industry compared to other media.
“Hopefully the market is seeing that, while there is some decline in natural revenues, regional is still going well and digital audio is now starting to hit its straps.”
Digital audio advertising revenues jumped 26% to $11.0 million. "We are also accelerating our efforts to fully monetise radio digital streaming audiences," said Davis.
ARN Regional’s 46 stations across 26 markets grew revenue 1% to $52.8 million, marking the two year integration of acquisition Grant Broadcasters, with the sales team selling national advertising campaigns into the regional market.
Overall, the current September quarter revenue is forecasted to perform slightly above last year with digital growth offset by radio results.
The advertising market is still short, increasingly so, Davis said.
“I'm really impressed with our sales teams in terms of their ability to turn around responses to briefs in such a short time," he said.
“Increasingly, we're competing against lots of other media for the same advertising dollars, so the quality of our pitches, our responses to briefs, the quick turnaround that we do, and then the implementation, gives confidence to our clients.
“But overall, radio's relevance, radio’s cost efficiency, radio’s ability to drive outcomes, particularly from a retail perspective, are well known.”
Audio accounts for 23% of total media consumption but only 9% of advertising dollars.
“And I think there's a great opportunity for radio to be able to move into and capture much more of the digital dollars, particularly from the likes of social and video.
“We all know that audio is a medium that's consumed while we're doing other things. It's not like when you sit down to watch TV, you've got to make a choice between free-to-air TV or a subscription service, and you watch one over the other.
“People are listening to audio when they're at the gym, when they're at work, when they're in the car, when they're on their own.
“We're not competing against other media and I think that all goes well for the future of the medium in terms of consumption and in an increasingly digital environment, to be able to monetize that differently and in other expanding markets.”
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