more newspaper acquisitions and radio stations

Movie theaters is definately not the way to go. Hope WAN continues down this road.
WANH tightens its radio grip on north

MICHAEL WEIR

WA Newspapers Holdings has secured almost blanket radio coverage of WA north of Perth after wrapping up the $12 million takeover of regional publishing group Geraldton Newspapers.

Analysts said the deal was as much about securing the strategic radio licences for the mid-west as buying another regional bolt-on newspaper and strengthened WANH's position as the State's dominant multi-media operator.

The purchase delivers WANH the thrice-weekly Geraldton Guardian, the giveaway weekly newspaper the Mid West Mail and Mid-West radio stations 98FM and 96.5FM.

WANH branched into electronic media two years ago when it paid $11.7 million for regional WA radio broadcaster RedWave Media.

RedWave operates Spirit AM licence and WAFM licence in Broome, Karratha and Port Hedland while its satellite station RedFM is broadcast to most WA mine sites, smaller towns, islands and offshore oil and gas rigs.

RedWave generated earnings before interest and tax of $700,000 on revenue of $3.3 million towards WANH's $69.4 million net profit for the nine months to March 31.

WANH managing director Ian Law said from Geraldton yesterday the deal was "a logical addition to our core competencies".

"For us there are dual synergies between the newspapers and our existing operations and also importantly between the radio stations and our existing network of RedWave Media," he said.

"I think for us as a company to have statewide coverage of the major regional centres of the State is important.

"There is no doubt it rounds off the RedWave radio group in terms of its coverage of the major centres north of Perth."

Mr Law said many people had underestimated the massive growth occurring in the Mid-West region. "When you look at map of this mid-west region it is becoming increasingly important as a mining region," he said.

"The area I think is poised for another very strong agricultural season but also there is huge growth across the spectrum on the resources sector."