Prime Media suffers ad revenue fall

Regional TV broadcaster Prime Media has made a disappointing start to the new financial year, with total ad revenues tumbling 6.9pct.

Advertising revenues have taken a turn for the worse at regional TV broadcaster Prime Media.

Just four weeks after flagging "modest" expectations for the first half of the new financial year, Prime says total ad revenues have dropped 6.9 per cent since July 1.

Prime's national ad agency revenues were down 2.6 per cent, while local ad revenues fell 9.6 per cent.

"There is a lack confidence among regional advertisers due to poor consumer sentiment, which in turn has resulted in a very short market with limited visibility," chief executive Ian Audsley said in a statement after the share market closed on Thursday.

"Markets dependent upon mining activity are the most affected, particularly regional Western Australia."

Mr Audsley said the fall in Prime's national agency revenue was disappointing, given that metropolitan TV broadcasters enjoyed a two per cent rise in July before a slight dip in August.

"September is somewhat impacted by the AFL grand final being scheduled in October this year," he said.

Prime in August reported a 5.2 per cent rise in net profit to $35.6 million for 2014/15 despite falling in ad revenues from Victoria and northern and southern NSW.

At the time, Mr Audsley described trading conditions in regional markets as difficult against a backdrop of an increase in online media available in country areas.

He said Prime's full year earnings would largely depend on revenues rising ahead of the Rio Olympics in August 2016.

Prime's shares closed 1.5 cents lower at 61 cents.


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Source: AAP



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