Prime Media back in the black

Regional TV broadcaster Prime Media has swung to a net profit of $10.2m for the six months to December 31.

Prime Media chief executive Ian Audsley. Picture: Ray Strange

Regional television broadcaster Prime Media has swung to a net profit of $10.2 million for the six months to December 31, despite tough advertising conditions dragging revenue lower.

The return to profit follows a net loss of $8.6m over the same period a year earlier, due to a non-cash impairment of $31m relating to its television broadcast licences and $9.3m due to a deferred tax liability.

First-half revenue fell 5.9 per cent to $97.9m, hurt by soft ad demand in NSW and Victoria.

Chief executive Ian Audsley said the group’s ad revenue in NSW and Victoria fell 5.3 per cent over the six-month period, in line with the market.

Still, revenue over the summer rose 4.7 per cent thanks to regional advertisers flocking to its cricket coverage.

Prime Media was steady at 25.5¢

But the focus was now on the upcoming federal election, said Mr Audsley, in line with guidance by other media sector chief executives including Tim Worner of Seven West Media and Hugh Marks from Nine Entertainment.

“While we expect a short-term stimulus, it does not necessarily point to long-term revenue growth in regional TV advertising markets,” Mr Audsley said after the close of trade yesterday.

The company, affiliated with Seven Network, posted a 27.3 per cent drop in underlying profit after tax of $10.2m, at the top end of market guidance.

The result was driven by ad revenue gains from the cricket coverage and continued focus on operating costs. Prime expects annual underlying profit after tax of between $16m and $18m, based on current trading conditions.

Mr Audsley said the search for a replacement for outgoing chairman John Hartigan is “well under way”, but in the interim, the veteran media executive had “graciously agreed to extend his tenure” until the position was filled.

Interim operating costs dropped 6.8 per cent to $25.9m.

Prime shares closed steady ahead of the results yesterday, at 25.5c each.