Emap Expects To Improve Melody’s Financial Performance

Emap Radio has said that it expects to significantly improve the financial performance of Melody Radio after agreeing to buy the station for £25 million this morning (see Emap Buys Melody Radio story).

In the year ended 30 September 1997 Melody had an operating profit of £0.4 million on a turnover of £3.6 million; Emap believes that by marketing the station to national advertisers as part of the group’s Magic network it will increase this performance significantly. It is also planning to relocate the station to its Emap On Air premises.

Although the sale has been agreed between Emap and Melody’s owners Hanson plc., the finalisation is contingent on the Radio Authority’s approval that the sale will not be to the detriment of public interest.

In order to remain within the radio ownership limits Emap is to dispose of the Cardiff-based services Red Dragon FM/Touch Radio. Emap says it has already received a number of expressions of interest for this service which had operating profits and sales of £1 million and £3.4 million respectively for the period ended 31 March 1997.

Emap Radio says that the acquisition of Melody will be complementary to its other metropolitan stations which are largely based outside London in the North West and North East of England and Yorkshire. In London Emap owns Kiss 100 FM.

Emap Radio’s chief executive Tim Schoonmaker comments: “Emap has grown its radio interests by serving metropolitan areas, which are particularly attractive to advertisers. The acquisition of Melody FM covering Greater London is exactly in line with this. As part of a large radio grouping, we expect Melody to show a significant financial improvement. The London market also offers us good opportunities to achieve this.”

Emap Radio c/o Braben Company: 0171 289 1616