Chrysalis Group’s radio business has outperformed the market in the year to 31 August 2001, with revenues rising by 18.3% to £44.0 million, according to the company’s year-end financial results, released this morning. This growth compares to a more or less flat performance of the radio market as a whole over the same period.
Operating profits at the analogue radio business alone rose by a healthy 45% to £7.2 million. Group turnover rose by 14.3% to £192.0 million. However, the cost of write-offs from new media businesses was £9.4 million, resulting in a pre-tax loss of £16.8 million, compared to a £0.9 million profit last time.
Radio Chrysalis Radio’s Heart stations have shown a very strong performance, with the London station increasing market share from 4.3% to 5.8%. Revenue growth across Heart 106.2 FM (London) and the Midlands station 100.7 Heart FM was 16.6% in the financial year.
The group’s Galaxy network of stations saw revenue growth of 18.1% over the year, with good audience gains.
Acquisition Chrysalis has also announced today an agreement with European publishing group, VNU, to acquire its 49.9% stake in Dutch television production unit, CVI Media Group, for E7.2 million (£4.5 million). Chrysalis already owned the remaining 50.1% of CVI and so now takes full control of the business.
Outlook In line with most other companies and commentators, Chrysalis says that it cannot predict the timing of an advertising upturn and is therefore running its business on the basis that the commercial radio industry as a whole will not return to positive growth in this financial year.
Nevertheless, the company says that its ‘strong organic growth drivers’ – particularly radio audience numbers – should enable it to deliver further revenue growth in current year, despite the broader economic conditions.
Subscribers to MediaTel Insight can access more national and international media analysis, forecasts and news. For subscription details please visit the site.
