MediaWorks chair McGeogh may follow CEO Weldon out the door, Street Talk says

Thursday 2nd June 2016

MediaWorks Investments chairman Rod McGeogh may follow former chief executive Mark Weldon and leave the free-to-air broadcaster, the Australian Financial Review reported in its Street Talk column.

McGeoch's future tenure at the company is "up in the air" and "he is likely to depart the company in the not-too-distant future," Street Talk said, citing sources it didn't identify. The column tipped MediaWorks director Jack Matthews as a likely replacement. Matthews is a former executive at Fairfax Media and was previously chief executive of New Zealand pay-TV company Saturn.

Weldon resigned from MediaWorks last month, saying the "personal cost" was "too high". He started in the role in August 2014, embarking on a restructuring to improve earnings at the television and radio broadcaster. His departure followed a string of high-profile staff departures and public relations disasters, including the breach of a central bank lock-up by TV3 Newshub reporters.

Street Talk said MediaWorks has appointed recruitment firm Russell Reynolds to find Weldon's replacement, although it said "insiders" had suggested Wendy Palmer, who runs the group's radio business, for the role.

Mediaworks announced its 2015 earnings at a briefing in Auckland yesterday, posting trading earnings before interest, tax, depreciation and amortisation of $33.5 million in the 15 months ended Dec. 31, 2015. It has changed its balance date since US private equity firm Oaktree Capital took full ownership last year. The previous earnings period spanned Nov. 8, 2013, to Sept. 30, 2014, when Mediaworks posted trading ebitda of $41.8 million.

Radio revenue of $177.9 million accounted for 51 percent of the company's total sales of $347.9 million, compared to 49 percent in the previous period, while TV revenue of $157 million made up 45 percent of sales, down from 48 percent. Digital revenue of $13 million was 3.7 percent of total sales compared to 3.6 percent.

BusinessDesk.co.nz

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