‘Don’t be alarmed’ says Melbourne SEN radio’s Craig Hutchison as Pacific Star suspends trading
Pacific Star’s SEN radio network hopes to keep operating as usual, broadcasting matches from the NRL and AFL.
Melbourne media entrepreneur Craig Hutchison has told staff at his SEN radio network and Crocmedia business to “please not be alarmed by this” after parent company Pacific Star Network voluntarily suspended trading in its shares on Friday.
Mr Hutchison, the chief executive of Pacific Star, told staff the business was “unable to properly inform the market” how it would deal with the impact of COVID-19 on its business.
He also told staff that they should operate on a business-as-usual basis and that “many other Australian companies have been doing the same thing,” in regards to the share suspension.
Pacific Star owns the SEN radio network, which has been broadcasting matches from the NRL and AFL in the past two weeks as both competitions kicked off, and also provides syndicated media content for other competitions.
SEN has also broadcast overseas sports, many of which have been at least temporarily suspended for the foreseeable future. It also features daily shows hosted by media identities such as Gerard Whateley, and ex-AFL footballers Garry Lyon and Tim Watson.
The business also owns 25 per cent of National Basketball League club Melbourne United and publishes the famous AFL Record publication which is sold at AFL venues at each match. With crowds unable to attend closed venues, the Record has been offered to fans for free via digital download, with management believed to at least want to keep publishing it given it carries substantial advertising. But Pacific Star will miss out on considerable revenue without charging its usual $5 cover price for print editions.
Pacific Star bought the Record from the AFL in a $8.1m deal in July 2018. The Record contributed about $2.27m of the company’s $2.9 net profit in the 2019 financial year.
The company on Friday requested the voluntary suspension of its shares due to, it said, the need “to continue to assess, and make an announcement to inform the market about, the effects of the COVID-19 on its business.”
Pacific Star said it would take about two weeks to “undertake the necessary reviews and assessments and to be able to appropriately inform the market” on how it will be impacted.
The voluntary suspension came after Pacific Star entered into a trading halt on Wednesday, and less than a month after recording $38.7m revenue in the first half of the financial year and underlying EBITDA of $4m.
Pacific Star had market capitalisation of about $51m before the share suspension. Mr Hutchison owns a 24 per cent stake and Viburnum Capital, backed by Perth investor Rhonda Wyllie, is also a large shareholder.
Mr Hutchison did not return calls or messages from The Weekend Australian.
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