Scottish Radio Outperforms Declining Market

Like GWR, Scottish Radio benefited from the stronger performance of local radio revenues, which offset the weakness in national spend (see GWR ‘Extremely Cautious’ On Advertising Outlook As Revenues Fall 3.5%). Local revenues, which comprise 41% of SRH’s total, rose by 7% over the period; national revenue, which makes up a further 41%, declined by 12%.

For the financial year as a whole, group revenues are estimated to have increased by 13% to £81 million. However, on a like for like basis (excluding acquisitions and disposals) the rise is just 1% to £70 million. SRH says this is a ‘robust’ performance in difficult conditions.

Press In SRH’s Score Press newspaper division, turnover is expected to be up by 2% over the last year. Advertising revenues are flat and circulation revenues are predicted to rise by 7% (43% if acquisitions and disposals are included).

Last week the group sold the Ireland on Sunday to Associated Newspapers for £7.4 million in cash (see Scottish Radio Sells Ireland On Sunday To Associated). This disposal removed SRH’s only loss-making newspaper and the group is now focused on its profitable portfolio of local weekly newspapers, the statement said.

Outdoor Score Outdoor, in common with other UK outdoor operators, experienced a drop in national advertising revenue bookings across May and June, the two months surrounding the UK general election. Compared with the same two months last year, Score Outdoor took £1 million less in advertising revenue. As a result, Score Outdoor revenues for the year to 30 September are likely to show modest growth of 3% compared with the previous year and outdoor profits will be curtailed as a result.

Outlook SRH says that it is less exposed to national advertising than some other media companies in the sector and therefore feels ‘well-placed’ to weather the difficult market. “Whilst the Board remains somewhat cautious regarding current trends in the UK advertising market, it believes the longer-term prospects remain attractive,” read this morning’s statement.

At midday today shares in SRH had slipped 12½p to 580p.