Macquarie Radio Network is bracing itself for a drop in earnings in its half-year results, with unaudited numbers suggesting a decrease of 25% in its underlying earnings before interest, tax, depreciation and amortisation (EBITDA).
In a statement to the market, the network said “abnormal charges” of about $2 million were expected to reduce its EBITDA by 56% compared to the prior corresponding period. In addition, underlying net profit after tax (NPAT) is expected to drop by 28%, while reported NPAT will fall by 65% compared to the previous corresponding period.
MRN executive chairman Russell Tate said the company had made gains of 3.7% from its Sydney radio operations but any boost had been outweighed by cost increases, including “the company’s focus during the period of the facilitation on a merger proposal with Fairfax Radio Network”.
Tate said there were also costs involved with restructuring its sales force, talent contract renewals, relaunching 2CH and administration costs.
MRN will announce its half-year results for the period ending 31 December on 18 February. The MRN and FRN proposed merger is thought to be going to a shareholder vote in March.
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