Macquarie Radio Network (MRN) has $900,000 reported net profit after tax (NPAT), a 77% decrease from the previous period.
The total revenue for the group increase by 2% over the previous period to $29.9 million with core Sydney radio revenue also increasing by 3.7%.
However its underlying EBITA decreased by 36% from the prior year hitting $4.1 million, which the network said was adjusted by talent contract renewals, 2CH relaunch costs and Commonwealth Games costs.
MR executive chairman Russell Tate said that its reported earnings were lower than expected in its January market announcement as a result of a further audit adjustment. However he reiterated that the network saw cost increase in facilitating a proposed merger with Fairfax Radio Network.
“We will continue during the second half of FY15 to incur one-off transaction costs to facilitate completion of the merger with FR,” Tate said.
“Immediately following completion, in the last quarter of FY15, we will commence restructuring of the combined group, which will also incur significant one-off costs, estimated at between $5 million to $7 million and which are expected to realise sustainable annualised cost synergies into the merged entity estimated to be between $10 to $15 million by 30 June 2016.”
He also added that MRN's earning would “continue to be negative impacted” by the steps up to and following the merger but is expected higher earnings during FY2016.
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