Radio Otago 57.5pc six-month increase

Press, 22 July 1986, Page 38

Radio Otago 57.5pc six-month increase

PA Wellington Radio Otago, Ltd, increased its six-month Profit 57.5 per cent to 154,000 ($97,000 in the corresponding period last year) for the period ended May 31, 1986, the company told the Stock Exchange yesterday. An interim dividend of 4c a share (2.5 c would be paid on September 1. Revenue from 4XO, Radio Central and Queenstown Underwater World was $1,384,000 ($997,000), an increase of 38.8 per cent An allowance was made for tax of $143,000 ($77,000).

There were no extraordinary items in the period, and Radio Otago’s share of profits from associated companies was nil ($4000). The result represented a return on shareholders funds of 28.6 per cent the directors said.

In the later half of 1985, the company purchased the underwater wildlife observatory known as Queenstown Underwater World, and sold it on July 1, making a profit of $62,000. This profit would be included in the results for the second half of the current year.

Earlier this year, the company began negotiating with Radio Avon, Ltd, to buy that company’s holdings in Foveaux Radio, Ltd, which holds a broastcasting warrant for the Southland area. Radio Otago made an otter to purchase the shares subject to the consent of the Broadcasting Tribunal. This consent has been granted and the purchase of the shares has been completed. Radio Otago, Ltd, now holds 170,000 ordinary shares (33.9 per cent) and 102,000 convertible notes in Foveaux Radio, Ltd.

The notes convert to ordinary shares on a one for one basis, on or before September 1, 1987, and upon conversion will give the company a 43 per cent holding in the issued capital of Foveaux Radio, Ltd. Shareholders funds increased to $l.B million, with asset backing of 150 c a share, compared with 93c a share at the start of the current year. Shareholders equity has increased to 74 per cent of total assets compared with 66 per cent of total assets as at November 30, 1985.