Mediaworks Delivers Credible Results in Challenging Economy

Friday, 25 February 2011

Despite challenging trading conditions, MediaWorks has reported an EBITDA (earnings before interest, taxation, depreciation and amortisation) trading result of $50.1m for the year ended 31 August 2010.

This represents a 10.6% improvement on the preceding year’s trading result of $45.3m.

Consolidated revenue across the group was $257.7m for the year, up from $255.6m in the previous year.

“Delivering a 10.6% improvement in EBITDA off the back of a 0.8% revenue improvement is evidence of robust cost management and efficient, streamlined operations right across our radio, TV and interactive operations,” said MediaWorks Group Managing Director, Sussan Turner.

“This is a credible result in a challenging trading environment where many businesses have revised their marketing spend.”

“The context of this week’s tragic event in Christchurch is an important reminder of the community role we play as a major media organisation. Fortunately our staff and their families are all safe and well, but the on-going rescue and recovery places enormous pressure on them, and I am grateful for their commitment and professionalism in very trying circumstances. Our thoughts are with the entire Canterbury community at this tragic time.”

“Today’s trading result is a further tribute to all our staff and management who together have worked incredibly hard to manage the business as effectively and efficiently as possible,” Ms Turner said.

Highlights for the year include network radio brands The Edge and The Rock dominating audience surveys for music stations; 3 News winning the 18-49 demographic for 2010; record audience numbers for the final season of Outrageous Fortune and significant growth in online audiences especially with an enhanced video-on-demand offering.

In the current financial year, performance for the first five months (September 2010 to January 2011) has been acceptable, and close to prior year results.

”We are cautious on the outlook for the remainder of the financial year due to the ongoing issue of consumer confidence and the impact that this has on advertising expenditure levels” said Ms Turner.

“The launch of our new channel FOUR has been well received in the market and we are already seeing improved spend levels on this brand, compared with its predecessor. This trend bodes well for the long-term,” she said.

ENDS

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