Scottish Radio Profits Hit By National Advertising Dip

First half revenues at Scottish Radio Holdings (SRH) have been hit by the substantial downturn in national advertising, the group’s interim financial results showed today. Total group revenues fell by 1%, with the effect felt most strongly at the company’s outdoor division.

Earlier in the week SRH agreed to sell its outdoor business, Score Outdoor, to Clear Channel UK (CCUK) for a minimum of £33.5 million; SRH will now concentrate on its radio and press businesses.

Commenting on the Draft Communications Bill, SRH said that it held good news for the media sector as a whole and in particular for radio.

“The proposal to allow non-European Union ownership is positive, but we are doubtful that regulators in the USA will reciprocate. At the national level, the ownership proposals within radio are to be applauded but at the local level we believe that the Government will need to do more,” the statement said.

SRH says it is well-positioned to weather the recent challenging climate for national advertising revenues:

“The difficulties of companies in the media sector dependent on national advertising have been well-publicised. It is encouraging that the group’s strategic focus on local radio and newspaper sales has cushioned against the weakened national advertising spend in radio in particular while positioning it strongly for the national upturn when it comes.”

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