Prime’s revenue slides 38.1% in April

Prime Media Group’s revenue for the financial year to date has slid 12.7%, or $20.2m compared to the year prior. Its April revenues, declined 38.1%, or $6.0m.

The drop has pushed the regional media business to register for the Federal Government’s Job Keeper program and apply for a grant.

Putting the blame on weak consumer sentiment and drops in advertising revenue across retail, household furnishings and automotive, Prime also said the changes to the AFL had impacted its revenue.

Prime’s key management will take a 20% reduction in base salary and forgo short and long-term incentives for the current financial year. Non-executive directors have also taken a 20% reduction in their fees and Prime has entered a hiring freeze which will reduce its workforce by 10%.

The business also plans to apply for a grant under the Public Interest News Gathering Program run by the Federal Government. The spectrum licence tax for commercial TV and radio is also being waived for 12 months, although Prime reports it will not see the benefit of this until January 2021.

CEO Ian Audsley said the business would not be providing an earnings outlook due to the uncertainty of the current market.

“Advertising expenditure in regional markets has slowed dramatically in response to restrictions to stop the spread of the COVID-19 virus. Forecasting regional advertising revenue continues to be problematic as we face a prolonged economic downturn and associated decline in advertising activity,” said Audsley.

“Prime’s Board and senior management have taken steps to ensure the company continues to operate efficiently in these difficult times.”

Prime was already struggling before the COVID-19 pandemic impacts were felt, posting a 56.2% drop in profit after tax for the first half of FY20. 

The business had intended to merge with Seven West Media, however this was blocked by shareholders Antony Catalano and Bruce Gordon.


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