Macquarie Radio Network's (MRN) profits plummeted 62% to $2.3 million for the six months to December 2011, down from $6 million in the previous corresponding period.
The company's Melbourne talk back joint venture with Pacific Star, MTR, has continued to plague the company, with MRN's operating loss for the station coming to $1.7 million. The company's impairment charge relating to amounts owing from MTR was $1.4 million.
Meanwhile, the network's revenue from the Sydney market declined by 2%, although the company retained a 26% share of Sydney market radio revenue.
MRN executive chairman Russell Tate said the overall poor results were reflective of a weak market. “We are seeing little signs of the market getting back to prior year levels this side of June 2012.”
In relation to MTR, Tate said, “For some months now we have been trying to agree with our joint venture partner an operating plan and budget for this business … we are hoping that we will be able to agree an operating plan and budget which will substantially reduce the current level of operating losses.”
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