The HT&E Ltd (ASX: HT1) share price is soaring in early afternoon trade, up 5.6% to $1.70 per share.
This comes following the release of the media and entertainment company's half year financial results for the period ending 30 June, 2021.
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The HT&E share price rockets on half year results
- Revenue of $109.9 million, up 21% from $93 million in the corresponding half year
- Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $30.4 million, up 56% from $19.5 million
- Net profit after tax (NPAT) of $16.3 million, compared to $3.6 the in the corresponding half year
- Half year dividend of 3.5 cents per share declared, fully franked
What happened in during the half year for HT&E
HT&E reported that its radio network, ARN continued to perform strongly across the metropolitan audio market. ARN held its #1 radio network position in Australia for 13 consecutive surveys.
The company also said its advertising markets were strengthening in Australia and Hong Kong, while digital revenues exceeded expectations by 149%.
On 18 May, HT&E announced the potential sale of Soprano Design Limited – in which it holds a 25% stake – to Link Mobility Group Holdings, listed on the Oslo stock exchange. HT&E's stake is valued at approximately $139 million. The company now expects a binding Share Sale Agreement will be executed shortly.
HT&E reported a strong balance sheet with net cash of $122.4 million as at 30 June.
What did management say?
Commenting on the half year results, HT&E's chairman Hamish McLennan said:
The business has performed strongly, delivering materially higher revenues, with the balance sheet providing significant optionality with net cash of over $122.4 million at 30 June 2021, and debt facilities with undrawn limits of $251.0 million…
The Australian media sector is expected to consolidate further and our current capital structure puts HT&E in a real position of strength to explore opportunities to become a multi-platform media organisation of scale, with digital content and commercialisation at its core.
What's next for HT&E?
The company said that the digital revenue performance at ARN has continued into the third quarter. It reported that average monthly revenues for the quarter are on track to finish at more than $1 million per month.
HT&E's CEO, Ciaran Davis said the company, "We will continue to invest to deliver scale, multi-platform content, digital and data capabilities and in technology that makes it easier to plan and book with our assets."
The HT&E share price is up 40% over the past full year.
