Sport network looms after 2CH buy

Media entrepreneur Craig Hutchison’s Pacific Star Network could launch a dedicated sports radio network in Sydney after striking a $11.2m deal to buy classic hits station 2CH.

Craig Hutchison,

Media entrepreneur Craig Hutchison’s Pacific Star Network could launch a dedicated sports radio network in Sydney after striking a $11.2m deal to buy classic hits station 2CH.

The deal with vendors Oceania Capital Partners, announced to the market on Friday, is the latest in what continues to be an aggressive expansion strategy by Mr Hutchison as his flagship SEN radio station in Melbourne battles after football was shut down by the COVID-19 pandemic.

Pacific Star is also launching a national racing radio network, after moving to borrow up to $28.5m from Commonwealth Bank in early May, and also announced the sale of its 1377AM radio licence to the Paterson family’s Ace Radio network for $4.5m on Friday to help its balance sheet.

SEN will also receive a boost from the AFL returning to play next Thursday night. The station has live broadcast rights and dedicates much of its content to the code. Pacific Star also provides syndicated content to radio stations around Australia, including some owned by Nine Entertainment.

It said the sporting shutdown would cause a 35 per cent fall in revenue this financial year and the company would break even at best, after a $2.9m profit in 2019.

While Mr Hutchison would not confirm Pacific Star’s plans for 2CH, the company’s strong focus on sport could lead to a future change in strategy for a station that already has a 3.8 per cent audience share.

Pacific Star said it intended to maintain existing supply agreements but would assess format performance and opportunities as they arose in the medium term.

“The opportunity to own and run a commercial licence in Sydney is rare, and on a station and signal that has built an audience and a following,” Mr Hutchison told the ASX. “It made sense to plan for the long term.”