Mediaweek yesterday had the story about the results of Pacific Star Network, the sports radio and media business with Craig Hutchison as CEO.
Pacific Star Network reports Crocmedia financials for 2018-19
FY19 revenue of $67.0 million was up 140% and underlying EBITDA of $9.0 million (guidance: $8.75-9.25 million) was up 208% on the prior corresponding period (pcp), respectively.
In the story is a report abut the purchase of the AFL Record business from the AFL.
In July 2018, PNW’s wholly owned subsidiary Crocmedia signed an agreement with the AFL to acquire the AFL Publishing business. The business is responsible for numerous football related publications, including the iconic AFL Record publication, which has been the official match program for more than 100 years.
The AFL Publications business had a purchase price of $8.1 million comprising $5.850 million cash less working capital adjustments of $0.244 million and $2.250 million prepaid advertising to be retained by the AFL. The AFL Record performance was in line with expectations, with revenue of $6.846 million and net profit after tax at $2.269 million.
That is a net profit 33.14%, an extraordinary result.
Now, while most of these publications are not sold in newsagencies, the report does indicate the value that can be achieve from a niche publication with an efficient distribution network.