• Austereo Group Limited
• Website: www.austereo.com.au

Industry:

Media

Fiscal Year-End:

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Austereo Group Limited (AEO) is an Australian commercial radio broadcaster. AEO operates three national radio networks, two JV stations and digital radio. The company also has operation in Malaysia.

The company was incorporated on 16 January 2001. The economic entity was formed effective from 28 February 2001 as a result of the acquisition of the net assets of VRB Limited, and listed on the Australian Stock Exchange on 5 March 2001 as a result of a prospectus dated 19 January 2001.

AEO operates in the metropolitan radio industry, which attracts nearly $600M in advertising revenue annually. AEO's radio operations encompass the Today FM and Triple M networks, which are targeted at the under-54 demographic. It also has two JVs (with ARN in Canberra and REG in Newcastle), as well as some international interests, including a management services arrangement in Malaysia and a 75% stake in VillageFM Athens.

AEO's differentiating factor is its unique position in the Australian radio market. It is the only truly national radio network that targets the under-54 demographic. It has a dual-station strategy, with the Today network skewed towards female listeners and the Triple M network skewed towards male listeners. It remains the dominant player in terms of revenue share. AEO's skill set is also leveraged internationally via a management services arrangement.

AEO's top advertisers encompass the retailers (Coles Myer, Harvey Norman), TV networks (SEV, Nine, TEN - the networks devote virtually all of their external advertising to radio) and telcos. Only about 20% of revenue is derived from local direct advertising. AEO's key competitors are DMG Radio (Nova stations target the under-40s) and ARN (50% APN, 50% Clear Channel - although its Mix and Gold streams target a slightly older 25-55 demographic.)