Here, There & Everywhere (HT&E) has reported strong revenue growth on its continuing businesses, which is mostly made up of Australian Radio Network (ARN), but a loss on street furniture arm, Adshel, which it has agreed to sell to Ooh!Media.
ARN revenue was up 7.3% compared to a market rate of 5.9% and EBITDA was up 13%.
The growth was driven by strong performances in radio station WSFM and the Kyle and Jackie O show, which has been the top FM breakfast show for 22 consecutive surveys in Sydney.
On a continuing basis, revenue grew by 10% to $137 million ($118 million contributed by ARN). HT&E EBITDA (excluding Adshel) increased by 28% to $30.4 million
If Adshel revenue is included, the group’s revenue increased by 1% to $234.8 million.
This is due to Adshel revenue declining by 9% to $98.9 million due to the loss of the Yarra Trams contract in the last quarter of 2017, which impacted Adshel’s Live digital network in Melbourne.
However, the street furniture arm is expected to recover following cost reductions and the successful renewal of contracts in parts of Western Sydney, Sydney Trains and Public Transport Victoria, among others.
HT&E agreed to sell AdShel to Ooh! Media earlier this year for about $570 million pending ACCC approval. If approved, this is expected to deliver $85 million in net cash.
HT&E interim chair Robert Kaye said its investment in radio is paying off by outperforming the market while Adshel’s turnaround has been “exceptional” given that it lost Yarra Trams.
CEO and managing director Ciaran Davis added that Adshel had made “significant inroads" into reinstating the national digital network after Metro Trains Melbourne assets went live in April.
This resulted in “an immediate uplift in advertiser engagement”, Davis said.
Davis also noted that HT&E’s eSports business Gfinity Elite Series had delivered strong partnerships and sponsors in the reporting period.
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.