The first set of results from John Singleton’s Macquarie Radio network is another of those pick a box profit comparisons.

In a press release, chairman Max Donnelly points to the fact that the company is ahead of forecasts made in the prospectus earlier this year, while the preliminary final report shows a 68% drop on 2004 profit figures because the company returned to paying tax.

Last year it had a $9.3 million plus tax credit, which always helps things, and resulted in a positive $6.9 million contribution to profit. This year no such luck. It was back to being a taxpayer. And if you delve into the preliminary final report you’ll find that the estimated tax bill at the 30% rate is roughly the same as in 2004 ($1.824 million versus $1.826 million in 2004). Spooky.

The prima facie tax bill is always a reasonable guide as to how a company has gone during the year and the lineball nature of that was confirmed by earnings before tax, where there wasn’t much change from 2004 ($6.079 million compared to $6.086 million).

This was on top of a 1.7% drop in revenue to $41.992 million, which is passing odd seeing how capital city radio revenues were strong in the year to June, probably much stronger than for metropolitan TV stations. But in a statement from Max Donnelly, some different figures: compared to the forecast in the prospectus revenues were up 2.0% to $41.81 million, earnings before tax were up 8.9% to $6.079 million.

All very interesting and meaningless. The prospectus forecasts were just that – estimates by directors and their advisers. The real basis for comparison remains the figures in the preliminary final report which show the best picture.

It was an average year for the company and the coming year might just be a bit of a battle given that the ad market for capital city radio is softening.