Macquarie Radio Network looking at sales and marketing after disappointing earnings
The Macquarie Radio Network is undertaking a “comprehensive review” of its sales and marketing functions after its revenues and profits both dropped back despite the Sydney radio market actually growing last year.
The network, which runs the most listened to Sydney radio station in 2GB, saw profits after tax drop 35 per cent on the previous year to $5.9m, with operating revenues down 2 per cent to $56.5m, and ad sales revenues down nearly $700,000 to $51.348m.
Chairman Russell Tate admitted the operating revenues were disappointing, adding: “The Sydney radio market grew by over 2 per cent in the financial year, and our operating revenues were actually down on prior year. A comprehensive review of our sales and marketing approach was commenced in the last quarter of the year and we are confident of regaining lost share in 2014/15 to move back into earnings growth.”
The news comes despite the company dominating the Sydney market with 2GB, although its 2CH music station which also broadcasts on the AM spectrum is less popular.
At its half year results in February the company admitted its digital Smart Radio Network had been a drain on its resources, whilst its managing director Rob Lowenthal quit in March.
The current financials show programming content costs had been cut by almost $500,000 this year, whilst most other costs had been kept largely in line with last year.
Alex Hayes
It would have helped if they hadn’t have got rid of their CEO in the middle of the financial year. Now who is CEO? Ray Hadley?
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