HT&E shares higher after surge in first-half profit

Shares in Here, There & Everywhere have rallied after the company posted a solid jump in first-half net profit.

HT&E chief Ciaran Davis. Picture: The Australian/Renee Nowytarger

Shares in media and entertainment group Here, There & Everywhere have rallied after the company posted a 72 per cent jump in first-half net profit. The group — formerly called APN News and Media before changing its name last year — booked a net profit of $27.2 million for the six months to June 30, up from $15.8m a year earlier.

First-half underlying earnings from continuing operations rose 28 per cent to $30.4m, buoyed by a 10 per cent rise in revenue from continuing operations to $137m.

HT&E (HT1) says revenue growth at its Australian Radio Network and Hong Kong Outdoor businesses was partly offset by falls in Emotive and Conversant Media operations due to “challenging” online display advertising conditions.

ARN — which boasts radio stations such as KIIS, Pure Gold, The Edge — booked a 13 per cent jump in first-half underlying earnings to $37.3m, thanks to higher revenue on the back of changes to on-air talent.

New breakfast shows on KIIS in Melbourne, 96FM in Perth and a new national KIIS drive show were launched in January, and the Christian O’Connell Breakfast Show started on Gold 104.3 in Melbourne in June.

However, the show changes saw HT&E’s underlying costs from continuing operations rise six per cent to $109.8m.

HT&E’s Adshel advertising business — which is being sold to oOh!media for $570 million as previously disclosed — reported a seven per cent fall in underlying earnings to $20.6m following the loss of a Yarra Trams contract. The company says the “solid” market conditions from the first half of 2018 have continued into the second half, with forward bookings suggesting revenue growth of about five to six per cent.

That compares with growth of five per cent in the second half of 2017. Costs are expected to rise, ahead of revenue growth, due to higher sales costs and increased digital staff.

HT&E shares closed up 12 cents, or 5.06 per cent at $2.49 against a firm Australian sharemarket.

AAP