Following heavy investment in its new Nova stations, DMG Radio Australia returned to operational profitability as a group this year and established Nova in Sydney and Melbourne as the most listened to stations by people under 40.
It enjoyed another eventful and successful year. In October 2002, DMG Radio acquired a new FM licence inthe fast growing Sunshine Coast region of Queensland. The new station, branded Hot 91 began broadcasting on 25th October, 2003 in one of the group’s most successful launches to date. To comply with broadcasting regulations, DMG Radio’s Brisbane AM station 4BH was sold at the end of March, achieving a profit of Aus$5 million. In December 2002, the Group launched Nova 937, the Perth FM station it won at auction earlier in the year in a 50% joint venture with Australian Radio Network.
Nova 969 in Sydney and Nova 100 in Melbourne continued to increase revenues and moved into profit, each setting station records throughout 2003. Both are the most listened to stations by all people under the age of 40 in their respective markets, with Nova 969 also becoming the number one FM station in the all-important breakfast timeslot.
Nova’s revolutionary programming and inventory policies continued to command the attention of both listeners and advertisers. As Sydney and Melbourne moved beyond their establishment phase, DMG Radio returned to operational profitability.
DMG Radio’s only metropolitan AM station, Adelaide’s Five AA, continued to be the highest rating commercial AM station in metropolitan Australia, while again setting another annual record in both revenue and profit.
The regional stations won the competitive listening surveys in all but one market during the year, and saw improving economic conditions as the year progressed.
The proposed joint venture in New South Wales’ Central Coast with RG Capital, announced in October 2002, did not proceed and DMG Radio will launch its 100% owned Central Coast licence early in 2004, adding another high growth regional market and the sixty fourth station to its portfolio.
GWR Group, in which DMGT has a 29.9% interest, achieved significant progress in restructuring to concentrate on its core UK business. Overseas operations have been sold and debt reduced significantly. The UK operational structure has been redesigned and benefits, particularly in the local radio group, are now flowing strongly.
GWR, and in particular its chairman Mr Ralph Bernard CBE, has pioneered the development of digital radio in the UK and is well positioned to benefit from the inevitable transfer of listening from analogue to digital as the uptake of digital radios increases. Demand for the new product is growing and manufacturers are now increasingly committing themselves to production.