GCap Remains Optimistic Despite Slip In Revenues

GCap Media has announced that revenues for the first quarter of the year will be down by 17% year on year, citing the “short term” impact of its recent decision to reduce the number of adverts on Capital Radio, as well as a weak advertising market in general.

Issuing a trading update for the twelve months to 31 March 2006, the broadcaster stated that revenues for the year ending 31 March 2006 are forecast to decrease by approximately 13% year on year against underlying proforma results.

In addition to market conditions and the changes to Capital Radio’s ad structure, GCap cited audience declines at its core heritage stations and the “inevitable disruption during post merger integration” as the main causes of the decline.

The broadcaster is optimistic, and expects the situation to improve in the near future, claiming that the final stages of its integration of planning systems is nearing completion following the merger of Capital Radio and GWR, with the company anticipating “increases in customer service levels as a result of the launch in early May.”

Elsewhere GCap reported a “positive” response by advertisers to its reduced advertising minutage on the relaunched Capital Radio in London, with the firm’s objective of maintaining the station’s premium pricing being achieved.

The broadcaster’s extension of the Xfm network is also progressing well, with the company completing the launch of Xfm Manchester on 15 March, and the relaunch of Beat 106 as Xfm Scotland in January. GCap also broadcasts Xfm on digital licences which previously carried The Storm.

GCap Media: 0207 663 7000 www.gcapmedia.com