HT&E radio boss keeps options open for future sell-offs

Here There & Everywhere chief executive Ciaran Davis has not ruled out divestments as the company doubles down on radio networks and audio content after a "transformative" period at the media business.

HT&E sold street furniture arm Adshel to outdoor advertising firm OohMedia last year for $570 million in a move that has made growth in its radio arm Australian Radio Network (ARN) even more crucial for the company's future.

Here, There & Everywhere chief executive Ciaran Davis.

The company's statutory net profit after tax for the 12 months ending December 31 totalled $43 million, up 12 per cent from $38.4 million in 2017. The profit attributable to shareholders was up 23 per cent to $36.7 million over the same period.

"We've had a number of years of transformation," Mr Davis said.

HT&E's outdoor arm in Hong Kong had its first profitable year since 2015, and Mr Davis said that if offers were made for this part of the business that were right for shareholders "then yes we will look to take it".

"[It's in a] very good position, 18 months ago would've been the wrong time to sell it ... it's much more profitable today," Mr Davis said.

He kept the door open to a potential sale of the company's 25 per cent stake in software company Soprano Design, saying that "if the right opportunity comes along to exit at the right price we would consider it, absolutely".

"We are absolutely focused on our radio and audio business. We think we're in a very good spot with ARN, which is our core business," he said.

"Audio is having a renaissance, there are new audiences and continued growth," Mr Davis said.

A quick uptake in smart speaker usage could bring radio back into the home in an "ecosystem" with podcasts, radio and audio streaming all working together, he said. At the moment, podcasting makes up about 4 per cent of the audience for HT&E's content with streaming at 15 per cent.

"In the US market it was 5 per cent [of households with smart speakers] in 2017. It was 18 or 19 per cent last year," he said. Australia has about 5 per cent of homes using this technology.

There are a number of media companies looking to podcasts as a possible growth vehicle, with Network Ten set to launch 10 Speaks this year.

Mr Davis was not concerned about more competitors, saying it was expected more businesses would try to launch in the space as podcasting grew.

Trading in 2019 was expected to be in line with 2018, with cost savings being a focus, but he said there was caution due to upcoming federal and state elections this year.

HT&E will pay shareholders a 4¢ dividend fully franked on March 15. The company's share price was up 0.4 per cent to $1.71 by 1.49pm.