More staff face axe at Radio Network

The Radio Network is shedding jobs in the face of the economic downturn.

But the company - which owns half of the New Zealand commercial radio industry - declined to comment on claims that it had already cut more than 80 positions under a "review" that began late last year.

The review was launched amid an advertising downturn that has hurt media on both sides of the Tasman during the fourth quarter. The period in the run-up to Christmas provides a big part of advertising revenue.

The Association of New Zealand Advertisers - which represents big spenders - said some advertisers were waiting to see developments before committing themselves to new ad campaigns.

But executive director Jeremy Irwin said others were moving ahead and there was a danger claiming "doom and gloom" in the sector.

The Radio Network, which has 120 stations across New Zealand, this week reported revenue down 6.9 per cent and earnings down 22.4 per cent for the year to December 31.

Chief executive John McElhinney said the company would not publicly specify the number of job cuts but it had embarked on a "normal business review". He said the company had 620 staff and confirmed that was lower than at the end of 2008.

He would not comment on radio industry claims the company had shed more than 80 jobs since December last year, and that a similar number of cuts was pending.

The company's stations include Newstalk ZB, Radio Hauraki, ZM, Classic Hits, Flava, Coast FM, EasyMix and Radio Sport.

It is understood that cuts have already been made in sales, production and some on air-staff. The Radio Network is half-owned by the American Clear Channel and half by APN News & Media, publisher of the Herald.

The first quarter after Christmas is traditionally slowest for media companies, although at least one executive, APN chief executive Brendan Hopkins, was optimistic about the March advertising spending.

Irwin said some advertisers were holding off ad campaigns until the scale of the economic downturn became apparent. He said the market was down but there was no evidence that advertising spending was being disproportionately hit by spending cuts.