Stereo FM loss

Press, 28 January 1984, Page 21

Stereo FM loss

PA Auckland The Auckland radio station operator, Stereo FM, Ltd, yesterday reported an audited trading loss of $246,700 for the six months to September 30. In addition to the operating loss, extraordinary expenses covering pre-operat-ing and preliminary costs totaled $149,600. Total tax losses to be carried forward are more than $500,000. Of the six months only four were regarded by directors as trading months,

as the station was not launched until the end of May. The loss, greater than allowed for in budget, resulted from a slower than expected response from advertisers caused by the lack of a definitive audience rating until November, the directors said. During that time heavy non-recurring promotional costs were sustained in launching the radio station. The audience survey published in November showed the station with 15 per cent

of the so-called prime target audience and 9 per cent of the total audience. The company is now trading profitably and directors expect this to continue for the remainder of the financial year. “We believe the proven programming quality, together with the increased penetration and awareness of FM as> a broadcast medium, will provide the potential for similar significant growth as has been experienced overseas,” said the directors.