DMG Radio Australia
KEY DEVELOPMENTS
- STRONG GROWTH OF NOVA NETWORK
- RETURN TO PROFITABILITY*
- DEVELOPMENT OF MULTIMEDIA CAPABILITY
DMGRA returned to profitability this year, driven by underlying† revenue growth of 24%, at constant exchange rates, against market growth of 6% nationally.
KEY FIGURES††
NETWORK PERFORMANCE
The improvement in performance was driven by a year of strong growth for the national Nova network which recorded an increase in operating profit* of 61% on the prior year.
Despite continued weakness in the Sydney advertising market, the Nova network achieved revenue growth of 22%, driven largely by an increase in its share of national revenue.
While the Nova network was again the number one national network in its target demographic of all listeners aged 18-39; Nova Brisbane continued its leadership of the Brisbane market achieving the number one overall position in every survey across the year.
The Vega FM stations in Sydney and Melbourne reduced their losses, but by less than had been expected. They continued to grow their target audience of 40-54 year olds, with Vega Sydney achieving the leading position in this demographic in Survey 5, 2008 for the first time. The stations also improved their overall ratings position relative to their main competitors.
5AA, the speech radio station in Adelaide, had another excellent year, increasing profits and retaining the number one overall position throughout the year.
OTHER DEVELOPMENTS
From an online perspective, Nova station websites have grown traffic by 27% year on year, with a 25% increase in audio streams and 66% increase in podcasts downloaded from the Nova sites. This growing online presence is also enabling the generation of new national revenues for the Group with 80% of major campaigns now containing an online component. In addition, developments such as the Nova network’s mobile phone applications have enabled the network to respond to the changing habits of its listeners and advertisers.
OUTLOOK
By continuing to focus on its core metropolitan brands, DMGRA expects Nova further to improve its reach into the 18-39 market and to see continued growth for Vega. In the first survey of the new financial year, Nova increased its audience share in all key Under 40 demographics in every market.
DMGRA continues to build on its multimedia capability, including online and mobile, and is well advanced in its planning for the launch of Digital Radio in May 2009.
* Adjusted operating profit (before exceptional items and amortisation and impairment of tangible assets).
† Underlying revenue or profit* is revenue or profit* on a like-for-like basis, adjusted for acquisitions and disposals made in the current and prior year and at constant exchange rates.
†† Percentages are calculated on actual numbers to one decimal place.