GWR To Focus On UK Market As Group Profits Fall

UK radio group GWR has announced that it will sell overseas radio interests – including stations in Europe and Australia – in order to maintain the group’s “leading role in UK radio”.

Ralph Bernard, GWR executive chairman, commented: “The Communications Bill marks a watershed for the UK media industry. GWR is committed to a focused strategy on the UK so that we may gain the maximum value from this period of unprecedented opportunity. GWR, with its wide network of national and local licences and its unique position in DAB, the future of radio, is central to any change.”

In a “brutally difficult” year, GWR announced that total turnover, including acquisitions, grew by 1.0% to £128 million. On a like for like basis, this represented a 4.8% decrease. In the UK, total revenues on a like for like basis were down by 5.4%, which is in line with estimates made in March.

Advertising revenues were down 7.2% on a like-for-like basis compared to an industry average decline of 7.7%. National revenues, which represent approximately 57% of UK advertising revenues were down 9.9% while local revenues were down by 3.1%.

The group stated that “following a review of our portfolio, we have decided to focus our resources on the assets we have within the UK where the greatest potential for growth in value exists. As a result, we are now underway with the disposal of a number of UK and European assets, which are not regarded as strategically important to our core UK activities”.

Subscribers to MediaTel Insight can access this report in full, along with more national and international media analysis, forecasts and news. For subscription details please visit the site.