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The chief executive of KIIS FM and Gold FM’s parent company Here, There & Everywhere (HT&E) says his business is an “absolute prime target” in any future media consolidation talks, but dismissed suggestions there was a deal in the works with Kerry Stokes’ Seven West Media.
HT&E chief executive Ciaran Davis said he may consider a sale of Hong-Kong based outdoor advertising company Cody later this year, but reiterated he was largely focused on building his audio business.
“We probably aren’t in a position to be the lead [in any deal],” Davis said. “But I certainly believe that if there is any consolidation -that is people are looking at radio as part of that consolidated play - we are the absolute prime target to be included in the negotiations and discussions.”
HT&E boss Ciaran Davis is open to any talks about consolidation, but said the company had not been approached.Credit:Simone De Peak
Davis’ comments were after the release of HT&E’s full-year financial results, which included a 53 per cent increase in revenue to $344.9 million and a 53 per cent increase in underlying earnings [before interest, tax, depreciation and amortisation] to $91.8 million. The company reported a statutory loss of $176.3 million, impacted by a $249.9 million impairment charge on the value of its radio business, ARN.
The results included 12 months of revenue and earnings from Grant Broadcasters, which it bought in early 2022 for $308 million. On a pro forma basis, revenue and underlying earnings grew by 5 per cent and 4 per cent respectively. This growth was driven by the performance of the radio business, which owns KIIS FM, WS FM, Gold FM and CADA FM, and Hong Kong-based business Cody.
Davis said the result was the best for Cody in three and a half years, opening up the option for a sale further down the track.
“We’re looking at pacing about 50 per cent ahead this time last year, which is a great position. As the year goes on...it just gives us options,” he said.
Davis told analysts revenue was largely flat for quarter one of this calendar year, but that there were early signs that quarter two would be strong. He said the federal government’s upcoming referendum would also drive revenue growth.
“We’re very good at managing costs when the revenue is not coming through,” he added.