New Media Write-Offs Cost Chrysalis £9.6m

The well-documented fall-out in the internet market has reached Chrysalis as the company today announced that it will be ending all new media investments bar its sports network Rivals.net. The write down to Chrysalis’ accounts for the year will total £9.6 million and this does not include trading losses incurred by the New Media division throughout the year.

Of Rivals.net, which Chrysalis says is the UK’s leading sports website, the company admits that converting user number successes into revenue remains a challenge, although progress is being achieved with Rivals meeting its revenue targets for the final quarter of the 2001 financial year.

Chrysalis is seeking strategic partners to further develop the Rivals business into new territories and onto new digital platforms and intends to appoint an advisor to assist the process in the near future.

Meanwhile Chrysalis Radio is having a strong year, with revenues anticipated to be up 16.6% at £43.4 million for the year to 31 August. During the same period audience levels rose by 12.5%. The figures are ahead of the industry as a whole which is expected to show flat growth across the period, the company said.

At midday today shares in Chrysalis were down 26p at 174p.

Chrysalis: 020 7221 2213 www.chrysalis.com

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