Macquarie Radio Network looking at sales and marketing after disappointing earnings

The Macquarie Radio Network is undertaking a “comprehensive review” of its sales and marketing functions after its revenues and profits both dropped back despite the Sydney radio market actually growing last year.

The network, which runs the most listened to Sydney radio station in 2GB, saw profits after tax drop 35 per cent on the previous year to $5.9m, with operating revenues down 2 per cent to $56.5m, and ad sales revenues down nearly $700,000 to $51.348m.

Chairman Russell Tate admitted the operating revenues were disappointing, adding: “The Sydney radio market grew by over 2 per cent in the financial year, and our operating revenues were actually down on prior year. A comprehensive review of our sales and marketing approach was commenced in the last quarter of the year and we are confident of regaining lost share in 2014/15 to move back into earnings growth.”

The news comes despite the company dominating the Sydney market with 2GB, although its 2CH music station which also broadcasts on the AM spectrum is less popular.