MRN sees 6% revenue rise, with profits buoyed by cost cuts
Macquarie Radio Network, owner of talk station 2GB, has reported a 6 per cent rise in its core radio revenue in the four months to October 31, boosted by cost cutting and a major scaling back of its new media initiatives.
The year-on-year rise in revenue comes two months after MRN abruptly announced the closure of its Livenews.com.au website after failing to make money.
In its latest trading update, MRN also said that its revenue growth has flowed through to its earnings, with overall earnings before interest, taxes, depreciation and amortization (EBITDA) for the period up 5.5 per cent compared to the same four months last year.
It has attributed the positive results to a number of factors including a “significant reduction” in new media initiatives and a return to focus on its core radio business; a company wide cost reduction programme; and the introduction of new programming in off-peak zones aimed at attracting new advertisers.
MRN chairman Russell Tate said it now expects to achieve in excess of $4.5m EBITDA for the December half and in excess of $8.5m EBITDA for the full year.
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