Macquarie downgrades 18/19 earnings forecast by 10%
Macquarie Media is feeling the effects of a turbulent advertising market, downgrading its earning expectations for 2018/19.
The radio network issued an update to the ASX this week which suggested that earnings will be approximately 10% lower than originally predicted.
Earnings before interest, tax, depreciation and amortisation are now between $27 million and $29 million, down from the previously suggested range of between $29 million and $32 million.
Trading conditions have fallen below expectations and underlying full-year earnings (EBITDA) for FY 2019 are now expected to fall between $27-29 million,” said Macquarie in the release to the ASX.
The Standard Media Index recently reported that ad spend in Australia had fallen in March for the sixth straight month.
Radio ad spend was down 5.6% on the same period last year.
Nine has acquired a 54.4% stake in Macquarie Media since then, and are reportedly to buy the remaining stake from John Singleton and other shareholders.