SRH Radio Revenues Drop 2% In Full Year
Scottish Radio Holdings (SRH) says that radio revenues are expected to drop by 2% in the year to the end of September. This is offset by a 2% rise in press revenue, leaving overall group revenues flat for the year, excluding acquisitions and disposals. Including acquisitions, radio and press revenues combined are 12% ahead of 2001.
Total like-for-like radio revenues for the twelve months are expected to be 2% below 2001, which the Board considers a good performance in the prevailing market conditions. A 7% fall in national advertising revenue has been largely offset by local revenues, which increased by 1%, and a 9% growth in sponsorship and promotions.
Including acquisitions radio revenues are estimated to be 18% ahead of last year.
During this financial year SRH acquired Wave 105 in Southampton (see Wireless Group Offloads Wave 105 To Scottish Radio In Debt Clearance) and the 76% not previously owned of Today FM, the national station in the Republic of Ireland (see Scottish Radio Outperforms Market, But Profits Dip).
Press The group’s Score Press division’s like for like revenues are expected to increase by 2%. Advertising and circulation revenues for the year to 30 September are expected to show increases of 5% and 9% respectively, with a drop in other revenues (mainly contract printing) of 8%.
Including acquisitions press revenues are estimated to be 5% ahead of last year.
The sale of Score Outdoor in July has removed the group’s only loss-making division (see OFT Clears Clear Channel’s Score Outdoor Acquisition). SRH says its remaining divisions have produced a strong revenue performance in challenging market conditions.
Outlook Recent radio revenues have been more encouraging, says SRH, but it remains too early to say whether the stronger performance in the last quarter presages a more sustained improvement.
SRH says it is fortunate to generate the majority of its revenues from local sources which have largely offset the weaker national advertising conditions of the last year. The company is confidence of its performance in the coming year.
Shares in Scottish Radio Holdings were down by 7½p at 577½p by early afternoon today.
