HT&E radio, digital and outdoor advertising business going strong in coronavirus environment

HT&E has a cash balance and financial positions that would be the envy of others, says chair Hamish McLennan.

HT&E chairman Hamish McLennan has been suggested as a new chairman of Rugby Australia. Picture: John Feder

HT&E chairman Hamish McLennan has said the radio, digital and outdoor advertising business now boasts “one of the strongest balance sheets in Australian media” despite the havoc being wrought by the COVID-19 crisis on the industry.

In an address to the HT&E’s digital general meeting Mr McLennan told shareholders on Thursday the company had a cash balance and financial positions that would be the envy of others.

“Today, HT&E has one of the strongest balance sheets in Australian media. While some businesses are struggling with their capital structures, your company had $111 million net cash at the end of 2019, no undrawn debt and a radio business generating strong cash conversion,” Mr McLennan told the webcast.

HT&E surprised the market last month by taking a 4.2 per cent stake in outdoor advertising company oOh!media that had been forced to tap the market for an emergency capital raising in March.

The outdoor advertising company achieved the $167m capital raising with private equity firm HMI Capital taking up to 25 per cent of oOh!

HT&E had previously sold its Australian outdoor advertising business Adshel to oOh! for $570m, and Mr McLennan said the company was well-positioned to make an equity investment in oOh! given its knowledge of the business and financial position.

“We recently maintained our optionality in what we believe will be a consolidating sector by purchasing a stake in oOh! Media.

“Having sold Adshel to oOh! for $570m, it is a business we know well, we believe in the emerging strengths of a combined radio and out of home offering we look forward to being constructive long term shareholder in the business.”

Mr McLennan has recently been suggested as a new chairman of Rugby Australia following civil war on the RA board and no broadcast deal for the sport which is in a parlous financial state.

HT&E’s Australian Radio Network was the number metropolitan network with top rating hosts such as Kyle & Jackie O on KIIS network and Jonsey & Amanda on the Pure Gold network.

This week, ARN announced the introduction of its new Dynamic Audio targeted digital advertising system, which claims to be able to be “the first and only media business in the world to have the capability to provide dynamically targeted advertising on AM, FM and DAB+ radio in real time.”

HT&E chief executive Ciaran Davis said the technology would deliver “more personalised and measurable campaigns for advertisers on radio.”

“Never before has a media company been able to automatically deliver real-time, personalised advertising to radio audiences but ARN can now send real-time messages to people based on their gender, age, location, interests and even the weather.”