APN to buy control of radio networks
APN News and Media has returned to profitability, and demonstrated its confidence in broadcast media by buying control of its radio businesses.
APN will buy the remaining 50 per cent stakes in the Australian Radio Network (ARN) and The Radio Network (TRN) from its US joint venture partner Clear Channel for $246.5 million.
ARN owns or has investments in 12 radio stations across Australia, including the Mix network, and TRN operates seven radio brands in New Zealand.
'We are confident that radio will continue to grow as a medium and that ARN and TRN will continue to capture a greater share of the market,' chief executive officer Michael Miller said.
APN made a $2.6 million profit in 2013, a turnaround from a $507 million loss in 2012 that included impairments on the value of its publishing assets.
Mr Miller said APN's performance was its best in years, with strong earnings growth in radio, a record result in its advertising business Adshel, plus the benefits from the sale of several businesses.
During the year, APN sold its billboard advertising business APN Outdoor, e-commerce business brandsExclusive and its eight per cent equity in Aussie Commerce Group.
The sale of APN's wholly-owned New Zealand magazine titles to Bauer Media Group had received regulatory approval and was expected to be completed in March, the company said.
APN said its Australian regional newspapers had an improved second half performance, although earnings were still down 23 per cent for the year.
The company plans to raise $132 million by offering new shares to its shareholders to help pay for its radio acquisition.
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APN to buy control of radio networks