Capital Radio Profits Hit By Ad Decline

Radio revenues at Capital Radio fell by 7% to £59.6 million for the six months ended 31 March 2002, the group announced this morning. Group revenue dropped by 8% to £60.0 million during the same period, whilst underlying pre-tax profit fell 20% to £14.2 million.

Capital says that combined radio revenues for April and May are expected to show a year on year decline of around 3%, which analysts at ABN Amro describes as ‘a touch disappointing’.

Nevertheless, the group has achieved operational savings of £1.5 million in the first half. In addition, digital radio costs are expected to be £5.8 million this year, down from an expected £6.5 million.

The results come just days after a disappointing RAJAR period for the group’s flagship station, Capital 95.8 FM, which saw weekly reach decline period on period by 8.7% and share of listening down by 0.9% points to 10.

Capital says that it welcomes the Government’s recent Draft Communications Bill, but argues that the proposed radio de-regulation does not go far enough. “Accordingly we, together with our trade body the CRCA, will be pressing the Government vigorously for further de-regulation of radio ownership during the consultation period of the Bill,” this morning’s statement said.

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.