Prime May Pursue Ipswich For Radio Stable
Sydney Morning Herald
Tuesday February 26, 2008
PRIME Media Group has signalled it may look to buy Fairfax Media's radio station in Ipswich, which the publisher is forced to unload to appease competition concerns.
"Regional radio continues to be an area of interest to us," Prime's chief executive, Warwick Syphers, said yesterday.Fairfax's River 94.9, one of the regional radio stations that Fairfax gained through its takeover of Rural Press last year, "is an asset that's of some interest to us".Prime Media's ambitions to expand its radio business to challenge Macquarie Media's regional network have hit a snag recently as the publisher has struggled to find good assets for sale. The company bought 10 Queensland radio stations from the Sunshine Coast to Cairns over the past two years.Mr Syphers made his comments after reporting a 15 per cent rise in profit to $18.5 million for the December half. Prime, which broadcasts Seven Network's programming in regional markets, benefited from Seven's lead in television ratings, which boosted advertising demand.Sales rose 31 per cent to $134 million in the half. Mr Syphers said the new year had started positively, despite concerns about an advertising slowdown amid a looming US recession. "I'm not seeing signs of demand falling away - we continue to see firm conditions for our ad sales, and I understand that is the same case with the Seven Network," he said. "There is every reason for us to have confidence in the business outlook," he added, citing the network's ratings crown and its coverage of the Beijing Olympic Games later this year.Prime will pay a first-half dividend of 8.5c a share, up 1c from last year.
© 2008 Sydney Morning Herald
