The head of Canada’s largest private radio broadcaster says the industry is experiencing a spring advertising rebound from the lows of the economic recession.
“For March, April and May I think you’re going to see a substantial, very close to a double-digit, increase in radio for the industry,” said Ian Greenberg, CEO of Astral Media Inc.
Industry analysts say radio advertising is rocking hard of late and may exceed forecasts of a 6% revenue increase for the quarter.
Greenberg wouldn’t indicate whether Astral will beat the industry again.
In April, he forecast that radio advertising revenue would increase in the spring quarter for the first time in a year.
He noted that radio was one of the first businesses to suffer and will enjoy a “dramatic comeback” compared with other businesses because it had such a steep decline.
Montreal-based Astral said it doesn’t expect the $80-million acquisition by Cogeco Inc. of 11 Corus Entertainment stations in Quebec will have much of an impact on the Quebec radio market.
Greenberg said the two companies had a common sales force so the change won’t alter the competitive landscape.
“We still are by far the No. 1 radio broadcaster in the province of Quebec and we expect to retain that leading position.”
While the company will continue to hunt for acquisitions, opportunities are few since it has the maximum allowable FM stations in most major Canadian markets, aside from Vancouver.
It is open to expand its outdoor billboard footprint and seek acquisitions, particularly in specialized television, although it doesn’t see any current opportunities.
In the meantime, Astral plans to rely on organic growth by launching new channels, including the French-language version of Playhouse Disney and other Disney possibilities.
