Radio broadcaster HT&E, emerging financially fit from the pandemic, is hunting for acquisitions.
Chairman Hamish McLennan, at the company’s AGM in Sydney, says he believes there will be continued consolidation in media markets.
"With its deep media experience, HT&E’s board will be looking for further opportunities to maximise shareholder returns," he says.
The company has no debt and $112 million in net cash, with a strategy focusing on strengthening core radio operations at ARN and investing in digital audio growth.
HT&E has also appointed Macquarie Capital to explore liquidity options for its 25% stake in instant messaging software company Soprano, considered a non core asset.
McLennan says the company is commited to reinstating dividends.
In a trading update, the company says total revenue for the March quarter, in an improving advertising market, was back about 2.5%. The month of March was ahead of the same month in 2020.
And the June quarter, comparing to the depths of the pandemic last year, is tracking well ahead of 2020 with April up 53% on the same month last year.
The company says: "Forward bookings and briefing activity for the remainder of Q2 continue to strengthen underpinned by strong ratings performance and business confidence.
"Growth in consumer demand for podcasts listening saw Q1 digital audio revenues grow over 180% on the prior period; we anticipate this level of growth to continue in Q2."
CEO Ciaran Davis says ARN outperformed the market in terms of broadcast radio revenues.
“Pleasingly, our operations have emerged from 2020 in better shape and we are encouraged that this momentum is continuing in 2021," he says.
"We are dominating ratings, winning 11 surveys in a row. In the crucial breakfast period, with Kyle & Jackie O No.1 for 18 surveys in a row, and Christian O’Connell in Melbourne in No.1 position for 7 surveys in a row.
“Our dominance continues in podcasting. We are the No.1 podcast publisher with 19 million downloads a month and we continue to onboard new content partners to consolidate our leading position, along with launching news products.
"As a result, we anticipate doubling of podcast revenues in 2021.
“The iHeartRadio platform is another point of difference for us in the radio market with an active unique audience approaching 1 million and total registered users approaching 2 million.
“We have invested in building our digital content creation, data capability and monetisation and we are starting to see the benefits of our exclusive partnership with global platform, iHeartRadio come through.”
A slide from the AGM presenattion:
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.