Radio broadcaster Austereo Group Ltd has forecast higher earnings for the full year after its superiority in the ratings helped drive an increase in half year profit.
But the modest 3.5 per cent rise in earnings disappointed a nervous market, which drove its shares down 5.21 per cent, or 11 cents, $2.00 at the end of trading.
Austereo, the owner of the Triple M and Today radio networks, posted a profit of $27.78 million for the six months to December 31.
The result was driven by a 8.7 per cent jump in revenue to $140.54 million, which was underpinned by increases in advertising rates and audience growth over the period.
The company said its share of listeners in the key 25-39 demographic rose from 30.2 per cent to 33.9 per cent.
Austereo provided no specific full year earnings guidance.
But chairman Peter Harvie said the company was on track to deliver increased earnings for the second half and full year, amid an anticipated two to four per cent rise in the capital city radio commercial market.
"We are currently on target to exceed the previous corresponding period for sales financial results for both the second half and for the complete financial year 2008," Mr Harvie told journalists in a conference call.
He added the company remained largely insulated from the slowdown in global earnings growth due to the reduced exposure to large multinationals in its client base.
"There is no doubt that radio generally is somewhat protected in these sorts of circumstances," Mr Harvie said.
"If you look at our top 20 clients, only five of those clients are multinationals. The multinational exposure is greater in television and print."
Austereo is home to radio personalties Hamish & Andy, Kyle and Jackie O, and Peter Helliar and Myf Warhurst.
"The group now has audiences in excess of 4.3 million and holds the number one place in Sydney, Melbourne, Perth, Canberra, (and) Newcastle," Mr Harvie said.
He added the group held the number two ranking in Adelaide and number three ranking in Brisbane.
"In terms of the online and interactive areas, our page impressions have increased, we are leading the radio industry there and in fact are number seven in the total entertainment net ranking category."
Sales growth for Austereo in the first half was also underpinned by increases in advertising sales.
Despite a temporary softening in advertising as a consequence of the November federal election, Austereo experienced strong and sustained advertiser performances, notably in automotive and beverage categories, both of which increased over 35 per cent.
Austereo, which is controlled by Village Roadshow, said its focus was on building its core radio business, driving its cross platform strategy and preparing for digital radio in 2009.
"We've restructured the interactive division to in essence to shift ourselves from being a radio company with an interactive division, to becoming an interactive media company," Austereo chief executive Michael Anderson said.
"To that extent, online had become very interwoven with our overall revenue generation."
Austereo delivered an interim dividend of four cents per share, compared to 3.8 cents in the previous corresponding period.
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