DMG Radio Australia (Nova and Vega) increased its profits and grew its underlying revenue by 1% despite a 4% decline in the radio advertising market in Australia, the UK parent, Daily Mail and General Trust said in its half year report delivered overnight. Revenue was flat for the half year as 26 million pounds, but operating profit hit 2 million pounds, up from zero in the first half of last year.
“In the final listener survey for the half year, the Nova network increased its share in the key 18-39 demographic across Australia. Vega Sydney again increased its market share,” DMGT said. (But Vega in Melbourne was weaker).
“Significant cost measures have been taken to mitigate the impact of anticipated lower revenues, arising from the adverse market conditions, which are aimed at driving profit growth further in the full year.”
It was a rare small, bright spot for the parent in a result that was mostly full of negatives, including lower revenues, lower advertising and lower profits. First-half pre-tax profits for the group swung from 22.6 million pounds in the first half of last year to a 239 million in the latest half, including 317 million pounds of exceptional items which included asset write-downs, impairment charges and redundancy costs.
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Turnover fell 7% to £1.09 billion pounds. Nearly 80% of the company’s sales come from business-to-business, where charging for content online is more common