The HT&E Ltd (ASX: HT1) share price opened 0.5% higher today before giving up those gains to currently be trading 0.3% lower.
Below we take a look at the latest quarterly results from the ASX media and entertainment company, for the quarter ending 31 March (Q1 FY21).
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What did HT&E report?
HT&E's share price is moving between gains and losses after the company reported it was the best performing audio company in Australia. It said its Australian Radio Network (ARN) remained the number 1 metropolitan network Down Under.
Total revenues at ARN for Q1 were up approximately 2.5% from the previous corresponding period. And with April revenues up 53% on the prior period, the company said Q2 FY21 is tracking well ahead of Q2 FY20.
HT&E's podcast business saw particularly strong growth in demand, seeing Q1 digital audio revenues increase more than 180% compared to the previous quarter. The company said it expects a similar level of growth to continue in Q2.
Commenting on ARN's performance, HT&E's CEO Ciaran Davis said:
ARN's radio revenue was down 21%, while the overall market was down 25.2%. Additionally, digital audio revenues were up 122% on a like basis and we saw good momentum in podcasting and streaming revenues.
Pleasingly, our operations have emerged from 2020 in better shape and we are encouraged that this momentum is continuing in 2021. We are dominating ratings, winning 11 surveys in a row…
We have invested in building our digital content creation, data capability and monetisation and we are starting to see the benefits of our exclusive partnership with global platform, iHeartRadio come through.
In Hong Kong, advertising revenues were "marginally ahead" of the prior period, impacted by restrictions put in place to control the COVID outbreak. The company said that improved revenues in April, along with forward bookings and briefing activity for the second quarter, point to rising consumer confidence and an improving advertising market.
HT&E's chairman, Hamish McLennan noted that:
We believe that there will be continued consolidation in media markets and with its deep media experience, HT&E's Board will be looking for further opportunities to maximise shareholder returns. As part of our focus on delivering value for shareholders we appointed Macquarie Capital to explore liquidity options for our 25% stake in Soprano.
The company ended the quarter with $112 million in net cash. It did not declare a dividend but McLennan said the board is committed to re-instating its dividend policy.
HT&E share price snapshot
HT&E has had a strong 12 months, with shares up 62% since this time last year. By comparison, the All Ordinaries Index (ASX: XAO) is up 34% in that same time.
The HT&E share price has struggled some in 2021, with shares down 3% year-to-date.
