Radio broadcaster Austereo Group says the market is more demanding and its first half results will be slightly lower than the previous comparable period.
Radio broadcaster Austereo Group says the market is more demanding and its first half results will be slightly lower than the previous comparable period.
But the operator of the Triple M network and stations, including 92.9 and Mix 94.5 in Perth, 2DAY FM in Sydney and Fox FM in Melbourne, says it is confident of the strength of radio in challenging times.
In August, Austereo forecast earnings to continue growing this financial year after buoyant ratings and advertising revenue helped drive a 5.1 per cent lift in profit for 2007/08.
At the time, it reported net profit of $48.8 million, saying it expected a rise of up to three per cent in radio advertising sales in capital city markets in the first half of fiscal 2009.
Today, chairman Peter Harvie revised those industry estimates downwards.
"Based on the market year-to-date figures, it is our belief that the July-December `08 half capital city revenue will be around minus 3.5 per cent," Mr Harvie said.
"We also believe that Austereo's first half financial results will be slightly below the previous comparative period.
"We are confident of the strength of radio in challenging times."
Mr Harvie said that in 20 years to 2007, four years were in negative industry growth for all media.
Against that trend, radio outperformed the combined growth of the major media categories of metropolitan radio, television and press in each of those years, he said.
This follows on from earlier reports of newspaper publisher and multi-media owner, Fairfax Media expecting tough trading conditions for some time.
Fairfax chairman Ronald Walker told shareholders today it was a time of serious economic challenge not experienced before.
In WA, Fairfax own radio stations 6PR and 96FM, which the group purchased from Southern Cross Broadcasting more than six months ago.
"Current world economic conditions are difficult," Mr Walker told the annual general meeting today.
"We foresee tough trading conditions for some time."
But Fairfax Media was well prepared for these times and its future prospects were good, he said.
"Fairfax Media is better positioned than at any other time in its past 177 years to meet the challenges we are facing right now, and to continue on a sound strategic course for the future.
"When there is recovery and there will be we are well positioned to take full advantage of it."
