Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Broadcast media advertiser GTN (GTN) forecasts lower revenue and adjusted earnings for the 2021 financial year compared to last year
  • Nevertheless, GTN maintains it has a strong cash balance and has locked in revenue for the next half-year, superior to the prior corresponding period
  • Adjusted EBITDA is tipped to land between $13 million and $14 million, and group revenue is projected to reach a maximum of $144 million
  • While advertising spending picked up later in the year in Australia and the UK, the company blamed pandemic for eating away at its Canada and Brazil revenue
  • Shares are trading 15.6 per cent higher at 37 cents at 1:54 pm AEST

Global Traffic Network (GTN) is forecasting lower revenue and adjusted earnings for the twelve months to the end of June 2021, compared to the 2020 financial year (FY20).

Nevertheless, GTN maintains it has a strong cash balance and has locked in revenue for the next half-year, superior to the prior corresponding period.

The company provides traffic updates to radio networks in exchange for sort-after advertising slots, and operates in Australia, the UK, Canada and Brazil.

FY21

For the current financial year, the broadcast media adviser is expecting to record earnings before tax, interest, depreciation and amortisation (EBITDA) of between $13 million and $14 million. In FY20, GTN recorded an adjusted EBITDA of $14.2 million.

This follows on from subdued group revenue predictions for FY21 of between $142 million and $144 million, as opposed to revenue of $160.9 million in FY20.

GTN noted that in Australia revenue had picked up by 23 to 24 per cent over the second half of the financial year. Additionally, revenue in the UK grew across the full year.

However, in Canada where there were prolonged pandemic lockdowns, revenue is tipped to be slightly lower in the second half.

In Brazil, where the COVID-19 situation has deteriorated, the company said revenue was also subdued and it expects it to remain impacted for the foreseeable future.

Nevertheless, GTN stated it has already locked in revenue for the first half of the 2022 financial year, above that of the first half of the current financial year.

The company also noted it expects to have cash balances of around $50 million at the end of June 2021, and had paid back $10 million of its bank facility to reduce its outstanding balance of $50 million.

Shares are trading 15.6 per cent higher at 37 cents at 1:54 pm AEST.

GTN by the numbers
More From The Market Herald
Sky Network Television (SKT) - Chief Executive Sophie Moloney

" Sky Network Television (ASX:SKT) raises FY22 guidance after cost review

New Zealand’s Sky Network Television (SKT) has issued considerably enhanced guidance following the completion of a “rigorous” cost review.
Tinybeans (ASX:TNY) - CEO, Eddie Geller

" Tinybeans Group (ASX:TNY) receives commitments for $8m placement

Tinybeans Group (TNY) has received commitments for an $8 million placement.

" Seven West Media (ASX:SWM) makes $131.9m bid for Prime Media Group (ASX:PRT)

Seven West Media (SWM) is looking to solidify its position in Australia’s broadcast landscape with the buyout of Prime Media Group (PRT) for
Enero Group (ASX:EGG) - CEO, Brent Scrimshaw

" Enero Group (ASX:EGG) sets Frank PR free for $1.5M

Media company Enero Group (EGG) has sold its 75 per cent interest in its public relations subsidiary, Frank PR.