Macquarie Radio Network Ltd, which owns Sydney radio stations 2GB and 2CH, says its performance this year has been significantly better than 2008/09 and should lead to full-year earnings growth of 31 per cent.Shares in Macquarie Radio, 73 per cent owned by John Singleton's private company, rose by 14.55 per cent, or eight cents, to close at 63 cents, the highest level since April 8, 2008.Chairman Russell Tate told the firm's annual general meeting on Friday that earnings before interest, tax, depreciation and amortisation (EBITDA) for 2009/10 should be more than $8.5 million, compared with normalised EBITDA of $6.5 million in the prior year.
"I am very pleased to say that our performance to date in the current financial year and our expectations for the full year are in stark contrast to the disappointments of 2008/09," Mr Tate said.
"I can now give you a trading update for the four months to October 31 and it makes for good reading for shareholders."
Mr Tate said that radio revenue for the four months was six per cent higher than for the corresponding prior period, excluding Olympic revenue in the first quarter of 2008/09.
EBITDA for the four months was up by 5.5 per cent from the year-before period.
"These outstanding results are of course underpinned by the continued ratings dominance of 2GB, in particular," Mr Tate said.
First-half EBITDA was likely to be over $4.5 million and the company expected to declare a fully-franked dividend of three cents per share.
Mr Tate said that 2008/09 had been a disappointing year, as EBITDA fell by 20 per cent.
Net profit slumped 95 per cent to $220,000 and no dividend was declared, after the company paid Alan Jones $4.5 million in cash to secure his long-term services, as his 11.3 million options were cancelled.
Mr Tate said Macquarie Radio would significantly reduce its new media activities and focus on its core radio business.
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