Prime Radio sell network to Grant Broadcasters

Prime Media has announced their exit from the radio industry, selling their Queensland radio network to Grant Broadcasters at a heavy discount from their investment levels.

The Prime Radio network consists of Hot 91 and Zinc Sunshine Coast, Zinc and 4RO in Central Queensland, 4MK and Zinc Mackay, 106.3 and Zinc Townsville, and 4CA and Zinc in Cairns.

Grant Broadcasters has acquired the stations for $24.525 million, plus surplus cash to be determined at the date of completion. The sale is expected to complete on 30 August.

The venture into radio by Prime Media has been a disaster.

After acquiring the radio assets for $77m over six years, they have impaired the book value annually, and have now sold for over $50m less than the acquisition price.

A year ago Prime CEO Ian Audsley commented on offers that had been received for the radio network over the last two years as 'insulting'. It is believed that these offers were well above what Grants have paid, however as the earnings continued to fall, so did the price.

Presumably, the Prime Media board now feel it is less insulting to exit before the business declines further.

Notwithstanding the low sale price in the context of the price Prime paid to acquire the assets, Grants are believed to have paid a reasonably full multiple for the business.

The sale multiple is believed to be around 8.0x EBITDA. Whilst full, this is based on softening Prime earnings and so is an enticing price for strong radio operators.

In FY11 Prime reported earnings of $4.8m, in FY12 they reported earnings of $4.3m, and it is believed the earnings in FY13 will be signficantly lower than that.

This is the third regional radio transaction in Queensland over the last couple of years.

  • Grant Broadcasters acquired Hitz FM and 4BU in Bundaberg from Fairfax at what was believed to be a multiple of 7.6x EBITDA
  • EON Broadcasting acquired Sea FM and Mix FM on the Sunshine Coast from SCA in a forced sale for a multiple of 6.2x EBITDA

Grant Broadcasters now have a solid footprint in every state in Australia, in some very attractive markets. 

The acquisition places Grant Broadcasters in competition with Southern Cross Austereo in Cairns, Townsville, Mackay and CQ, and with EON Broadcasting on the Sunshine Coast. 

 

Published on Monday, 12 August 2013 11:19



ExPower(10:35am 12 Aug 2013)
Well done to the Camerons. It would be nice if they also spent some money on upgrading their existing stations too. I believe they've been using the same on-air software for nearly 20 years at some stations.

And how about a nationally branded network?
StillPower(10:48am 12 Aug 2013)
Indeed well done to The Camerons. The belief that they are using the same software for nearly 20 years is incorrect. Current stations operate with either Next Gen or Audio Vault, all versions made within the last 5 years.
Keith(10:49am 12 Aug 2013)
Well done Grant Broadcasters, Fairfax follow Prime's lead and sell.
Anonymous(11:00am 12 Aug 2013)
Lets all take a moment to be thankful it wasn't sold to Caralis.
Anonymous(13:18pm 12 Aug 2013)
At least now someone with some kind of radio knowledge is running the show, instead of running the place to the ground. Feel for the amazing staff there who are about to have their world turned upside down again! lets hope its for the best.
Do the Math(13:39pm 12 Aug 2013)
So Prime initially bought 2 stations for 33 million.
And now they sell 10 stations for 24 mil.
That worked well didn't it?
Brendan Atchison(14:35pm 12 Aug 2013)
Congratulations Janet Cameron and family.Sure come a long way from 2 DU days in the Seventies.
Business 101(15:21pm 12 Aug 2013)
As they say in the boardrooms filled with people who 'know' what they're doing. THAT'S how you get a small business. Buy a big one, and run it down to the ground?
Steve(15:41pm 12 Aug 2013)
Wow, current Granters must be high-fiving themselves!

The environmentalist in me however feels for the extra trees that will be slain to print pointless capex orders. Nah just kidding, love your work!

Just a reminder the light bulb in Studio A still needs replacing.
Ryan Rathbone(15:51pm 12 Aug 2013)
Well done to the Grant Broadcasters on their purchase it’s good to see an Australian family business growing.
Hopefully their live and local operation style remains viable and they can continue to help save regional radio from becoming a series of networked shows.
Jan(16:19pm 12 Aug 2013)
I just think Prime did such a terrible job that anything has to be better.

If you work at Zinc etc.... don't get your hopes up!
Dr Radio(17:52pm 12 Aug 2013)
It is pleasing to see Grant get these stations.

In many ways this company sets standards the commercial radio industry should all aspire to.
Michael(18:12pm 12 Aug 2013)
This is great news for regional radio in QLD. Grant broadcasters are excellent radio operators evident from River 94.9 in Ipswich, Chili 90.1 in Tasmania and K-Rock/Bay Fm in Geelong. These are quality stations owned by people who know how to make good radio.
Adam McGrath(19:18pm 12 Aug 2013)
Great news for family. As x power, 2ec,krock,bay fm employee lets hope is kept local and live and continues to grow
Richard S. Kazimer(4:59am 13 Aug 2013)
Tell me they at least kept the Red Swingline Stapler.
George(6:52am 13 Aug 2013)
Whilst its nice that many current employees like to praise the Cameron's for their new purchase the reality of their radio prowess is somewhat below par.
Simon(7:27am 13 Aug 2013)
Prime really blew this one Wow
Their loss is Grants gain
davesmith(9:41am 13 Aug 2013)
Great to see Prime Radio is once again owned by a strong and dedicated radio company that is passionate about the medium.
Prime Radio with it's mix of AM Talk, AM Music with FM music formats is always fighting above it's weight up against stronger dual FM SCA stations. The main fact is that Prime has many talented ,hard working and dedicated people within it's ranks ,And I believe that they can only benefit from joining the Grant Broadcasters Team.
Anonymous(17:46pm 26 Jan 2014)
If only they bought out the Capital Radio Network, then they'll be 100% National and when DAB coming to Hobart?

 Post Anonymously 

   I am a real live breathing human person

SCA has a vacancy for a Commercial Scheduler in Sydney. Details

 

 

7HO FM are looking for a Sales Manager. Details.

 
 
 
 

The River in Albury has a role available for an Announcer/Music Director. Details.

 

3MBS in Melbourne are looking for a Sponsorship Manager. Details.

 
 
 

SCA are looking for an Assistant Content Director in Albury across Star FM and The River. Details.

 
 

ARN is looking for a Traffic Executive based in Sydney. Details.

 

2Day FM Sydney has a vacancy for a Breakfast Imaging Producer.. Details.

 

6PR has a vacancy for a Casual Producer. Details.

 

Grant Broadcasters has a vacancy for a Client Manager on the Sunshine Coast. Details.

 

 

2ST and 94.9 Power FM are looking for a Program and Content Director.Details.

 

 

Tasmanian Broadcasters has a vacancy for a Producer based in Launceston. Details.

 
 
 
 

SCA has a vacancy for a Breakfast Announcer in Rockhampton. Details

 
 
 
 
 

Grant Broadcasters has a vacancy for a Journalist and Breakfast Co-Host in the Riverland of SA. Details.

 

 

 

 

 

6PR is looking for a Casual Journalist. Details.

 

 

 

 

 

 

 

 
 
 

2Day FM is looking for an Announcer / Operations Support.  Details.

 
 

Recent Comments

NOVA Entertainment has appointed Neil O’Reilly as General Manager for Nova 919 and FIVEaa in Adelaide.

 

 

Tim Collins and Tayla Golesworthy have been picked up by Radio 97 in Tweed Heads 

 

 

 

 
 
 

After 9 years at MIX and SEA FM Ryan “Ryno “Khay heading to Port Moresby for a new network role with CHM Supersound.

 

 

 

 
 

Cath Dwyer has been appointed Manager of 702 ABC Sydney.

 
 

Sam Fotu has been promoted to the role of WA General Manager for SCA

 
 

Ashley Myatt will take on a new senior management role with SCA managing the NSW region based out of Newcastle.

 

 
 
 
 

Steve Smith who been with SCA for over 28 years and the GM for NX and KO FM Newcastle has been made redundant.

 

 
 
 

Michael “Moffee” Moffett is joining Southern Cross Austereo as CD for 2CS and Star FM in Coffs Harbour.

After close to 30 years with the company and five years in charge of Australia’s largest commercial radio group, Craig Bruce has departed Southern Cross Austereo as Group Content Directo

 

 

 

 
 
 
 

Warwick Tiernan has been appointed  Manager of 774 ABC Melbourne.

 
 
 
 
 

Richard Smith has started with SCA as their new Head of Digital


 

 

Most Read (Last 30 Days)

Adelaide Advertisers

1. National Tiles National Tiles Co Pty Ltd
2. Harvey Norman Harvey Norman Holdings Ltd
3. Woolworths Woolworths Ltd
4. Coles Coles Group Ltd (Wesfarmers Ltd)
5. Foodland Metcash Trading Ltd

Brisbane Advertisers

1. National Tiles National Tiles Co Pty Ltd
2. Harvey Norman Harvey Norman Holdings Ltd
3. Coles Coles Group Ltd (Wesfarmers Ltd)
4. Brisbane Boat Show Marine QLD
5. Woolworths Woolworths Ltd

Central Coast Advertisers

1. Harvey Norman Harvey Norman Holdings Ltd
2. Domayne Harvey Norman Holdings Ltd
3. Ettalong Diggers Ettalong Beach War Memorial Club Ltd
4. Flight Centre Flight Centre Travel Group Ltd
5. Mingara Recreation Club Mingara Recreation Club Ltd

Gold Coast Advertisers

1. Harvey Norman Harvey Norman Holdings Ltd
2. Domayne Harvey Norman Holdings Ltd
3. Jupiters Hotel & Casino Echo Entertainment Group Ltd
4. Beds 'R' Us Beds 'R' Us Pty Ltd
5. Kia Kia Motors Australia Pty Ltd

Melbourne Advertisers

1. National Tiles National Tiles Co Pty Ltd
2. Harvey Norman Harvey Norman Holdings Ltd
3. McDonald's Chicken McNuggets McDonald's Australia Ltd
4. Coles Coles Group Ltd (Wesfarmers Ltd)
5. The Royal Melbourne Hospital Home Lottery The Royal Melbourne Hospital Foundation

Newcastle Advertisers

1. Domayne Harvey Norman Holdings Ltd
2. Harvey Norman Harvey Norman Holdings Ltd
3. Nobby Kitchens Nobby Kitchens
4. Leah Jay MORPLEA Pty Ltd
5. Climax Suspension Climax Suspension

Perth Advertisers

1. Harvey Norman Harvey Norman Holdings Ltd
2. Coles Coles Group Ltd (Wesfarmers Ltd)
3. Woolworths Woolworths Ltd
4. Automotive Holdings Group (AHG) Automotive Holdings Group Ltd
5. Let's Get It On - The Life & Music Of Marvin Gaye Room 8 Productions

Sydney Advertisers

1. Harvey Norman Harvey Norman Holdings Ltd
2. Dick Smith Electronics & PowerHouse Anchorage Capital Partners
3. Mortgage House Mortgage House Pty Ltd
4. Masterton Homes Masterton Homes Pty Ltd
5. Woolworths Woolworths Ltd

Wollongong Ratings

1 I98 23.8 (28.5) WIN
2 Wave FM 16.0 (17.3) GRANT
  • 10+ share Mon-Sun, Survey 1/2014
  • IRIS Research

Wellington Ratings

1 NewstalkZB 15.3 (10.5) TRN
2 The Breeze 13.7 (14.6) Mediaworks
3 ZM 11.3 (12.4) TRN
4 The Sound 7.5 (7.1) Mediaworks
5 The Rock 7.4 (8.3) Mediaworks
6 The Edge 6.6 (8.3) Mediaworks
7 Coast 5.7 (4.6) TRN
  • 10+ share, Survey 1/2014

Warrnambool Ratings

1 Coast FM 37.7 - Ace
2 3YB 21.7 - Ace
3 triple j 7.3 - ABC
4 ABC Local Radio 4.0 - ABC
5 ABC Radio Nat. 2.5 - ABC
6 Classic FM 1.5 - ABC
  • 10+ share Mon-Sun, Survey 1/2015
  • Xtra Research

Sydney Ratings

 

  2GB 13.2 (12.8) MRN
 ABC 702 7.9 (8.6) ABC
  WSFM 7.6 (8.2) ARN
  TRIPLE M 6.5 (7.9) SCA
 KIIS 1065 7.2(7.6) ARN
 smoothfm 95.3 8.2 (7.2) NE
 Nova 96.9 6.6(6.9)NE
 triple j7.0(6.3) ABC
  • 10+ share Mon-Sun, Survey 5/2015

Perth Ratings

  Mix 94.5 14.2 (14.3) SCA
  Nova 93.7 11.7 (11.3) NE
  96FM 10.2 (10/9) ARN
  triple j 10.2 (12.0) ABC
 ABC72010.2(9.8)ABC
  hit 929 9.9 (7.2) SCA
  6PR 8.4(7.2)MRN
  6IX 4.6 (6.0) CAP
  • 10+ share Mon-Sun, Survey 5/2015
  • 96FM now owned by ARN / 6PR owned by MRN

Newcastle Ratings

1 KOFM 1563 (15.3) SCA
2 ABC1233 13.6 (11.9) ABC
3NXFM 10.7(11.6) SCA
4 2HD 10.4 (9.8) BOG
5 Triple J 9.9 (9.9) ABC
6New FM8.5(10.0)BOG
7 Classic FM 4.0 (3.) ABC
  • 10+ Share Mon-Sun, Survey 1/2015

 

Melbourne Ratings

 

  3AW 12.6 (12.1) MRN
  ABC 774 10.2 (10.9) ABC
  Gold 8.4 (8.7) ARN
  Triple M 8.5 (8.6) SCA
  Fox FM 8.3 (7.7) SCA
  smooth935 6.4 (7.5) NE
  KIIS 101.1 7.2 (7.3) ARN
 Nova 100 6.1(6.3)NE
  • 10+ share Mon-Sun, Survey 5/2015
  • Mix101.1 now KIIS 101.1 

Gold Coast Ratings

1 Hot Tomato 14.2 (14.1) HT
2 Gold FM 11.9 (14.3) SCA
3 Sea FM 9.6 (9.5) SCA
4 ABC 91.7FM 7.9 (6.7) ABC
5 triple j 7.8 (9.4) ABC
6 ABC612 5.2 (3.3) ABC
7 Radio National 2.5 (2.3) ABC
  • 10+ Share Mon-Sun, Survey 1/2015

 

Christchurch Ratings

1 Newstalk ZB 17.0 (16.1) TRN
2 More FM 10.7 (11.8) Mediaworks
3 The Breeze 10.2 (8.8) Mediaworks
4 The Rock 9.0 (10.3) Mediaworks
5 The Edge 6.9 (6.5) Mediaworks
6 The Sound 6.0 (6.4) Mediaworks
7 Classic Hits 5.7 (5.7) TRN
  • 10+ share, Survey 1/2014

Canberra Ratings

  104.7 18.8 (18.5) SCA
  ABC666 15.3 (15.3) ABC
  Mix 106.3 13.9 (11.6) SCA
  Classic FM 8.6 (9.3) ABC
  triple j 8.2 (8.5) ABC
  2CC 6.1 (6.0) Capital
  2CA 5.5 (7.0) Captial
  Radio National 3.6 (3.0) ABC
  • 10+ share Mon-Sun, Survey 2/2015

 

Brisbane Ratings

 

 97.3FM13.3(14.0)ARN
 Nova 106.9 12.5(13.2)NE
 ABC6128.6(10.0) ABC
  4MMM 9.4 (9.8) SCA
 hit105.3 8.6(8.3) SCA
  4KQ 8.4 (8.3) ARN
  TRIPLE J 8.9 (7.8) ABC
  4BC 5.7 (5.0) MRN
 Magic 882 4.9(5.0) MRN
  • 10+ share Mon-Sun, Survey 5/2015
  • B105 now hit105.3

Auckland Ratings

1 Newstalk ZB 13.4 (13.0) TRN
2 Coast  9.6 (8.1) TRN
3 The Edge 7.8 (6.0) Mediaworks
4 The Breeze 7.0 (6.5) Mediaworks
5 Classic Hits 6.7 (5.9) TRN
6 ZM 5.9 (5.6) TRN
7 Mai FM 5.2 (4.3) TRN
  • 10+ share, Survey 1/2014

Adelaide Ratings

  Mix 102.3 14.5 (14.0) ARN
 Nova 91.9 11.7 (12.5) NE
  FIVEaa 11.7 (12.0) NE
 ABC89110.1(10.9) ABC
  Cruise 9.7 (10.4) ARN
  Triple M 9.1 (8.8) SCA
  hit107 7.8 (6.7) SCA
 triple j 7.5 (7.6) ABC
  • 10+ share Mon-Sun, Survey 5/2015 (GfK)
  • hit107 on-air Oct 2014, was SAFM
CompanyStock IDPriceChange
Southern Cross Media
SXL
0.905
-2.16%
APN News & Media
APN
0.475
-1.04%
Fairfax Media
FXJ
0.815
0.00%
Macquarie Radio
MRN
1.14
0.00%
Pacific Star Network
PNW
0.280
0.00%
Oceania Capital
OCP
1.16
0.00%
Ten Network
TEN
0.175
2.94%
Seven West Media
SWM
0.695
1.46%
Nine Entertainment
NEC
1.54
-0.64%
Prime Media
PRT
0.605
-3.20%

Most Commented (All Time)