GWR To Focus On UK Market As Group Profits Fall

Ralph Bernard, GWR executive chairman, commented: “The Communications Bill marks a watershed for the UK media industry. GWR is committed to a focused strategy on the UK so that we may gain the maximum value from this period of unprecedented opportunity. GWR, with its wide network of national and local licences and its unique position in DAB, the future of radio, is central to any change.”

In a “brutally difficult” year, GWR announced that total turnover, including acquisitions, grew by 1.0% to £128 million. On a like for like basis, this represented a 4.8% decrease. In the UK, total revenues on a like for like basis were down by 5.4%, which is in line with estimates made in March (see GWR Sees ‘Some Improvement’ In UK Radio Market).

Advertising revenues were down 7.2% on a like-for-like basis compared to an industry average decline of 7.7%. National revenues, which represent approximately 57% of UK advertising revenues were down 9.9% while local revenues were down by 3.1%.

The group stated that “following a review of our portfolio, we have decided to focus our resources on the assets we have within the UK where the greatest potential for growth in value exists. As a result, we are now underway with the disposal of a number of UK and European assets, which are not regarded as strategically important to our core UK activities”.

GWR’s also has a 25% interest in DMG Radio Australia and an option to acquire the remaining 75% from DMGT before July 2003. Following a series of launches and acquisitions, the company made a considerable loss during 2001, of which DMGT’s share was £1.3 million.

Today GWR announced that “The Communications Bill has significantly changed the prospects for UK radio. We have, therefore, decided to dispose of our holding in DMGRA, which is carried at £45 million in the accounts.” and added that the proceeds of all disposals will be used to reduce current debt.