Craig Hutchison’s New Zealand radio station fire sale
Craig Hutchison has sold the loss-making New Zealand radio stations back to the same company he bought them from just two years ago.
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Exclusive: Craig Hutchison has sold the loss-making New Zealand radio stations back to the same company he bought them from just two years ago.
The New Zealand radio stations were bleeding cash, costing Sports Entertainment Group $2.4 million in the latest financial year.
The New Zealand TAB has bought back the radio stations it sold to Hutchison’s company for $4 million.
Sports Entertainment Group chairman Craig Coleman noted the deal would help the company reduce its $28 million debt with the Commonwealth Bank, which is due in August next year.
The Commonwealth Bank debt was secured at a 4.71 per cent interest rate, which was set to soar to at least 12 per cent when refinanced, banking insiders say
“Importantly, this transaction removes start-up losses from our operating performance,” Mr Coleman said in a note to the ASX.
“In FY23 our New Zealand business represented a negative o – underlying $2.4 million drag on EBITDA.”
TAB NZ had been criticised for shutting down its radio stations during the Covid-19 pandemic, with SEN at the time seen as a white knight to bring sport back to the airwaves.
The station has struggled to make a profit despite its high-profile talent signings.
Hutchison’s company purchased 29 AM/FM stations across New Zealand in 2021, with the purchase “funded from existing cash reserves”.
Hutchison championed the move into New Zealand in March 2021, saying in an announcement to the Australian Securities Exchange he was “delighted” to “unleash SENZ”.
SENZ signed former New Zealand captain Brendon McCullum when he launched the station.
However, he left the station and has been the coach of the England cricket team, who have taken on the “Bazball” style of play named after him.
The deal to sell the New Zealand stations was announced on Thursday, just hours before the Sports Entertainment Group annual general meeting in Southbank, Melbourne.
TAB NZ will buy back the stations it sold for $4 million in cash, with SEN to provide programming in a “multifaceted deal”.
SENZ will sell advertisements on the stations and receive a commission, the ASX statement said.
The deal comes after SEN signed a deal with TAB NZ’s partner Entain in Australia for another three years.
Mr Coleman added he was “delighted” with the sale to TAB NZ, which would also offer a “broader, integrated and approved sports and wagering offer.”
Hutchison has been criticised for overpaying for assets by his former boss Graham Mott, but he responded this week saying the coverage of his company was “laughable”.
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Originally published as Craig Hutchison’s New Zealand radio station fire sale
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