Sharewatch: Chrysalis Dips Despite Positive Results

Radio group Chrysalis saw its share price falter yesterday, losing 5.30% to close at 183p despite announcing an ‘encouraging start’ to its 2005 financial year, as first quarter revenues are expected to reach high single digits.

The radio group, which owns London’s Heart 106.2 station, said in a trading update that revenues for the 12 months to 31 August 2004 have met expectations, growing 20% year-on-year to £67 million (see Chrysalis Sees An Encouraging Start To Financial Year).

Radio groups as a whole performed poorly yesterday, with the Wireless Group dipping by 1.73%, SMG losing 0.46% and GWR slipping by 0.96. All three broadcast groups are understood to have tabled bids for an FM licence in Edinburgh. The deadline for licence applications to Ofcom was yesterday (see Radio Heavyweights Line Up For Edinburgh Licence).

Elsewhere ITV lost 1.59% to close at 108p despite being given the go ahead for its £31 million acquisition of the majority stake in GMTV. The move was given the all clear by the Office of Fair Trading, despite wide-spread concern from the advertising industry (see ITV Gets Go Ahead For £31 Million GMTV Acquisition).

The threat of a slowdown in the UK housing market and continued strength in crude oil stocks put the markets on the defensive yesterday. The FTSE 100 lost 0.5% to 4,568.5 with banks accounting for one third of the decline due to the threat to mortgage business. The FTSE 250 also suffered, losing 1% to close at 6,205.3 as a number of its listings include building firms.

The closing prices of media company shares on Thursday were: