Radio Avon loss

Press, 20 December 1985, Page 10

Radio Avon loss

Radio Avon, Ltd, incurred a trading loss of $33,100 in the six months to September 30, compared with a tax-paid profit of $62,360 for the same period last year. • The chairman, Mr R. J. Stewart, said that included in the loss was a provision for depreciation of $23,192 (last year $27,575) and the costs of $15,700 for the FM hearings incurred to date. Net revenue of $726,158 was 3.8 per cent down on last year’s $755,438. Expenses of $743,550 were 15.5 per cent up on last year’s $643,872. Equity accounting of Radio Otago, Ltd, and Foveaux Radio, Ltd, reduced the loss by $21,040 being the 25 per cent of the profit of Foveaux Radio and 24 per cent of the retained profits of Radio Otago. The equity-accounted loss of $12,060, compared with $76,180 in profit for the corresponding period last year. As previously announced, the company has sold its interest in Ohau Ski Area, Ltd, which will affect the result for the final six months by a loss of $lOB,OOO. . z Ohau losses will materially affect the result for the year to March 31, but the directors believe that the decision to sell Avon’s interest in Ohau was in the best long-term interest of Avon and its shareholders. Further involvement would have resulted in greater erosion of the company’s financial resources, which were best served concentrating on broadcasting. Trading for the second six months would be difficult but the directors were confident that changes in the station’s positioning promised brighter prospects for the coming year. .The directors have not recommended an interim dividend.