SIX weeks after agreeing to pay its star broadcaster Alan Jones a $4.5 million bonus to extend his contract, the John Singleton-controlled Macquarie Radio Network has not ruled out job cuts as part of a review to cut costs and counter a sharp drop in advertising.
The owner of Sydney's No.1 talkback radio station, 2GB, plans to look at every part of its business - including staff and program production - in coming weeks to find savings after advertising demand in the country's biggest radio market fell off a cliff last month.
"It's fair to say that we were surprised regarding the October market result," the chief executive, Angela Clark, said after the company's annual meeting yesterday.
Asked whether the broadcaster would eliminate jobs, she said: "The savings can be any aspect of the business … that's pretty self-explanatory." She would not give any savings targets.
Macquarie Radio warned last week that its first-half operating earnings would fall 10 to 15 per cent after radio advertising in Sydney slumped 15.3 per cent last month, deteriorating rapidly from a 5.6 per cent decline in the three months to September.
The broadcaster was able to grow its sales in the first quarter because of its coverage of the Beijing Olympics, but is now feeling the brunt of the downturn like its rivals. Ms Clark said the radio advertising market was "extremely" short term and the company was unable to comment on demand next year. "All we're expecting is that the October trends are just going to continue until the end of the year."
Shareholders yesterday approved plans to give Jones, who is paid about $4 million a year, a $4.5 million cash payout by buying back his options over 14 per cent of the company, and grant him 4 million new options.
