Prime Media reports $12.3m loss
Regional broadcaster loss of $12.28m is down from a $56m profit the previous year.
- Published by David Knox
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Regional broadcaster Prime Media has reported losses of $12.28m for FY18, down from a $56m profit the previous year.
Prime blamed losses on the ongoing decline of regional free-to-air television advertising markets and increasing programming costs.
Revenue dropped 8.7% to $219.2 million. While the Commonwealth Games improved Prime’s audiences and revenue in the second half of FY18, ad spend was less than Rio Olympics due to fewer days of competition.
Earnings before EBITDA fell 29.5% in the last fiscal year to $45.2 million.
Prime CEO Ian Audsley, said, “We’re pleased to have delivered a core net profit of $25.3m that is at the high end of market guidance. It’s a good result in an otherwise challenging year.
“Our sales teams maintained an industry-leading revenue share of 41.9% and extracted optimal opportunity from the Gold Coast Commonwealth Games in the second half, which somewhat ameliorated the choppiness of the regional TV ad market.”
Prime recently agreed to increased affiliate fees with Seven Network.
One Response
As an ex-employee of Prime, I don’t see the business having much of a future on its own – certainly if the regional TV market as a whole is in decline and their affiliation costs have gone up.
Marking time is how I see it, I think management could use some new blood because it’s quite clear that Ian Audsley is of the “cut to the bone” school of management – how about finding ways to increase revenue through diversification?