Ferret's Stock to Watch: MACQUARIE RADIO NETWORK LTD09:10,...

Ferret's Stock to Watch: MACQUARIE RADIO NETWORK LTD
09:10, Monday, 20 November 2006

TWO MACQUARIES GETTING THEIR LINES UNCROSSED

Sydney - Monday - November 20: (RWE Aust Business News)
*******************************************************

OVERVIEW
********

Reading the latest business news last Friday was a bit confusing
with two Macquarie stories around and about.

The big news was Macquarie Media Group's (ASX:MMG) surprise $165
million raid on Southern Cross Broadcasting late last week which sent
Southern Cross shares into a frenzy of activity and lifted the shares
$1.11 to $15.60 - still well below the $16.50 MMG paid for them.

But Ferret digresses.

Then came the Macquarie Radio Network (ASX:MRN) on which we are
focusing our attention after the company announced a diversification deal
which lifted the shares 6c to $1.21.

But neither group is related to the other.

Late last year Macquarie Radio Network had a problem on this
issue and released a statement about its identity titled: "Macquarie
Radio Network (MRN) corrects potential confusion regarding ownership of
commercial radio stations 2GB and 2CH."

Macquarie Radio said it had exclusive ownership of Sydney
stations 2GB and 2CH and had no affiliation with MMG or regional radio
stations, and issued the statement

The statement was issued, it said, "... to clarify MRN's
ownership in light of references in press which incorrectly associate the
stations with Macquarie Media Group (MMG)."

MRN's CEO Angela Clark emphasised there was no relationship
between MRN or its stations and the Macquarie Media Group.

Macquarie Radio is trying to make itself quite different.

If you want see the real talking horses in action or other
newsmakers outside the circle and what they say 24 hours a day, the
Macquarie Radio Network has just done a deal to put it all into podcasts
following a diversification move into a digital video and film production
company.

It has just bought out PixelMill Films which the company says is
the perfect fit for the MRN business growth model.

"We have been working with the company for many months piloting
video podcasts across a range of categories, including fashion, travel
and motor sports," chief executive Angela Clark said.

"PixelMill will continue to produce video content for external
parties, and will also offer custom content opportunities to MRN's
cross-media clients," she added.

SHARE PRICE MOVEMENTS
*********************

Shares of Macquarie Radio on Friday sold 6c higher at $1.21.
Rolling high for the year is $1.49 and low 90c while the all-time
high is $1.91. Dividend is 6c to yield 4.96 per cent. Earnings per
share is 6.9c and p/e ratio 17.54. The company has 82.9 million shares
on issue with a market cap of $100.3 million.

Macquarie Radio posted a satisfactory result for 2006,
reporting a net profit after tax up 57 per cent to $5.727 million.

The company retained its leadership in the Sydney market with
2GB, which in Survey 4 reported a 4.4 break ahead of the number two
station.

It was the biggest lead by a station in 10 years.

MRN outperformed the Sydney radio advertising market and grew
market share across the year.

Its second-half revenue performance was stronger than the first
half, despite a deterioration in the radio advertising market.

MRN's revenue (excluding contra) increased by $619,000 for the
year, a rise of 1.5 per cent. Including contra, overall revenue was
$41.746 million - a slight (0.59 per cent) decrease on last year.

Meanwhile the board approved an on-market share buy-back
program of up to 8,137,698 shares.

Chairman Max Donnelly said, "The Board has approved the share
buy-back program in recognition of the its focus on maximising returns to
shareholders."

The on-market share buy-back is being undertaken by Bell
Potter.

In another expansion move, Optus and Macquarie Radio Network
have been the first to offer cellcasting to Optus mobile customers.

This will include live audio coverage of rugby league finals'
series.

By simply dialling 955 on their handset, Optus mobile customers
get access to 'On Demand' and 'Event Based' content.

Customers are presented with a suite of content which is updated
throughout the day and they can control the service through
voice-activated commands.

BACKGROUND
**********

Delivering the largest adult radio audience in Sydney, the
Macquarie Radio Network is home to the number one rating talk station,
2GB 873, and easy listening 2CH 1170.

Listed on the ASX in April 2005, MRN sees significant
opportunities and challenges for traditional media into the future.

Embracing 'new media' made it the first company in Australia to
distribute video segments of its shows, the first company to make a
video news service available on iTunes and the first to partner with a
telco to podcast live to mobile phones.

The company believes it's this passion and professionalism that
will ensure MRN's continued success.

ENDS

Copyright © 2006 RWE Australian Business News. All rights reserved.