DMGT Extends Radio Brand With Australian licence

Newspaper giant Daily Mail and General Trust has made its second foray into broadcasting with the acquisition of an FM radio licence in Australia.

The deal, announced today, is worth £43 million and the company expects to begin broadcasting before the end of the year. The new station will use the infrastructure of DMGT’s existing Australian radio station, Nova 969.

Competition for the broadcasting rights was fierce, with the Macquarie Radio Network, consisting of Sir Richard Branson, former BSkyB chief Sam Chisolm and advertising heavyweight John Singleton, also pitching bids for the licence in Sydney.

DMGT, which owns a 30% stake in UK based radio group GWR, will now have the opportunity to bid for more Australian licences. An auction for an FM licence in Brisbane is due to be held later this month, and a licence in Melbourne will be sold later in the year.

Commenting on the latest development for Australia’s radio industry David Flint, chairman of the Australian Broadcasting Authority, said: “this is the last lap of the analogue planning process for metropolitan radio in Australia.”

DMGT Recently announced that its national newspaper advertising revenues had begun to increase, although claimed it was too early to call a turnaround in the market. The group, which owns the Daily Mail, Mail On Sunday, Evening Standard and Metro titles, has seen display advertising increase by 5.4% in the five months to February 2004, boosted by a strong performance from the retail category in the run up to Christmas (see DMGT Sees Good First Half, But Markets Still Volatile).

The Daily Mail & General Trust: 020 7938 6747 www.dmgt.co.uk

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