Reporting Season: Macquarie Media delivers strong earnings and dividend growth

By Trevor Hoey. Published at Aug 8, 2018, in Features

Name: Macquarie Media Limited (ASX:MRN)

Market Capitalisation: $370 million

Last Closing Price: $2.15

Macquarie Media (ASX:MRN) has reported robust financial performance for the 2018 financial year, generating an underlying net profit of $21.5 million from revenues of $136.3 million.

This profit excludes a one-off gain of $3.9 million in relation to the sale of Satellite Music Australia (SMA).

Management declared a final dividend of 4.0 cents, bringing the full year dividend, including a 3.0 cent special dividend in relation to the sale of SMA, to 10.0 cents, up from 7.0 cents in 2017.

The company delivered strong underlying profit growth of 24%.

News talk stations perform well

While most of the company’s business units performed well, the news-talk stations were a standout, continuing their ratings dominance in Sydney (2GB) and Melbourne (3AW), while 6PR in Perth delivered strong and sustained audience growth.

MRN noted a healthy audience increase in the last survey of the year from 4BC in Brisbane.

The group has also outperformed the broader industry in terms of sales.

Note that any decision with regards to adding this stock to your portfolio should be taken with caution and professional financial advice sought.

Commenting on the results, MRN chairman, Russell Tate, said, “We have also seen in fiscal 2018 an exceptionally strong performance by our sales teams who have achieved year on year revenue growth on our news-talk stations of 9.0% compared to overall metropolitan market growth of 3.8%.

“We have also increased our overall share of market revenue despite the significant impact on short term revenue potential of the switching of our three east-coast “Talking Lifestyle” stations to the new “Macquarie Sports Radio” format.

“This new format will take time to build audience and revenues and we are hopeful that it will achieve break even revenue levels during fiscal 2019 which will add a further 4% to our total revenues.”

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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