New Media Costs Push Chrysalis Into The Red
The costs of investing in internet development are showing at Chrysalis Group, as interim financial results for the six months to 28 February, show a group-wide pre-tax loss of £5.6 million.
Pre-tax profit on the core divisions of radio, music, television and media products was up 178% at £4.3 million.
The group says that its radio stations showed revenue growth of 38% against an industry average of just 12%. Audiences rose by 12% across the period.
Chrysalis Radio operates seven major market stations under two network brands, Heart and Galaxy. It is the fourth largest radio group in the UK. This gives Chrysalis a market share of 7.8% of all commercial listening, with 82% of listeners falling in the 15-44 age demographic.
Its digital radio consortium, MXR, has been awarded the first four regional digital multiplex licences in the West Midlands, South Wales, the North East and North West.
Commenting on the results, Richard Huntingford, CEO, said: “I am delighted to report that excellent progress has been made across the business in this half year. Our Radio Division has continued to significantly outperform the market as a whole and the organic growth potential of our relatively young stations gives us great confidence that we will be able to maintain above average revenue growth.”
Chairman, Chris Wright, said: “I remain confident that the Group is extremely well placed to deliver enhanced value for its shareholders as the media industry enters a period of further growth, expansion and consolidation following the widely anticipated new Communications Act.”
Despite the optimistic outlook, stock in Chrysalis had slipped back 7½p to 262½ by late morning.
