Cost cutting looms for HT&E after revenue fall

Media company HT&E’s revenue fell 5 per cent in the first quarter and it now plans cost savings.

HT&E boss Ciaran Davis. Picture: Renee Nowytarger

Media and entertainment company HT&E has reported a five per cent fall in first-quarter revenue, hurt by soft trading in March, but is looking to make cost savings across radio and its head office to mitigate the hit on earnings.

Chief executive Ciaran Davis will tell shareholders at the group’s annual meeting that there was an improvement in April, and based on forward bookings in May and June, HT&E expects first-half revenue to be down 2-3 per cent from a year earlier.

Costs savings of about 2 per cent in the first-half to June 30 “will mitigate the impact” on earnings before interest, tax, depreciation and amortisation, Mr Davis said in his pre-released speech to shareholders.

“We continue to pursue cost savings in both radio and at the corporate office,” Mr Davis said.

HT&E boasts radio stations such as KIIS, Pure Gold and The Edge and also has digital investments, which are under review.

Mr Davis said it is reviewing its “smaller digital investments to assess their synergy either from an audience or revenue perspective with ARN and how we can maximise shareholder value.”

HT&E’s digital investments include esports business GFinity, creative technology company Unbound and its 25 per cent stake in instant messaging software business Soprano.

“The review of these assets is underway and we expect to have made significant progress by the end of 2019,” Mr Davis said.

In February, HT&E booked a net profit of $225.5 million for the 12 months to December 31, boosted by the sale of its outdoor advertising business Adshel for $570 million. That compared with a net loss of $117.5m in 2017.

Stripping out Adshel, HT&E posted a 7 per cent jump in annual underlying earnings of $71.8m on the back of a 5 per cent rise in revenue from continuing operations to $271.8m.