Capital Radio Sees ‘Modest’ Revenue Growth Ahead
Airtime revenues at Capital Radio rose by 5% during its first quarter, in line with an improvement in the general advertising market and meeting the group’s expectations.
Capital is seeing strong revenue growth at its London alternative station, Xfm, as well as across the Century FM network. Its flagship London station, Capital 95.8, is faring less well – at least in audience terms. The station’s weekly reach fell by 6.3% year on year to 2.3 million in Q4 2003, although a quarter on quarter comparison shows 1.5% growth.
Capital’s statement comes just after rival group Chrysalis Radio posted a 19% rise in revenues during the five months since September 2003. To make matters even more difficult for Capital, Chrysalis says that following this ‘exceptional’ revenue performance, it is planning to boost its marketing activity, particularly in the London area. Chrysalis’ Heart 106.2 is hot on the heels of 95.8 to become London’s most popular station.
Capital says that January 2004 revenues increased by 1% year on year. The company is anticipating that February and March revenues will also show ‘modest’ growth. A further trading update is due on 1 April 2004.
Chrysalis To Boost Marketing As Radio Revenues Jump 19%
Chrysalis Radio revenues have jumped by 19% year on year during the five months since September 2003 and forward visibility is continuing to improve, according to chairman Chris Wright.
Wright will tell this morning’s AGM that marketing activity at the radio group will be enhanced following the ‘exceptional’ revenue performance. In London in particular, high profile changes at a number of other stations provide the group’s Heart and LBC stations with opportunities for growth, says Wright.
Chrysalis Radio’s Heart 106.2 in London has been creeping up on rival station, Capital 95.8, in the last couple of RAJAR audience surveys. Heart reaches just under two million listeners a week and is rising, whilst Capital’s audience declined by 6.3% year on year in Q4 2003 to 2.3 million.
Trading in the rest of the group remains in line with expectations. Chrysalis Music held the Christmas number one spot in both the US and UK singles charts, with Outkast’s Hey Ya and Gary Jules’ Mad World respectively. Royalties from overseas territories from these two songs will benefit the music division over the next couple of years.
“Overall, I am extremely pleased with the progress made across all divisions in the first five months of the 2004 financial year and believe that the Chrysalis Group continues to be well placed to maximise its potential within the newly deregulated media environment,” said Wright.
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