Ad revenues at radio group GWR rose by 6.0% year on year in the second quarter, ahead of expectations and at first look indicating a strengthening radio marketplace; GWR had been expecting only ‘marginal’ growth for the period (see GWR To Focus On UK Market As Group Profits Fall).
Like for like revenues in the UK were up 5.0% in Q2, principally driven by a good performance at Classic FM where sales were up 23.0%. National and local revenues for the UK local radio group were down by 2.0% and 3.0% respectively.
Market remains volatile However, despite the pick-up in adspend – and positive figures were also released by Chrysalis Radio this morning (see Chrysalis Radio Ad Revenues Outperform Market) – GWR says that the ad market remains volatile. Whilst demand for Classic FM is healthy, the local stations are still struggling. The group is anticipating a decline in revenue for Q3 2002. A further trading update will be released at the end of the quarter, in September.
The group also noted in the AGM statement that digital radio sets, priced £99, were released to shops this week; initial stocks sold out immediately. GWR has been a keen pioneer in the development of digital audio broadcasting in the UK (see Radio Companies Push Cheap Digital Receivers).
Separately, GWR this morning also announced the sale of its 25% stake in DMG Radio Australia to Daily Mail and General Trust (see GWR Offloads DMG Radio Australia And Reduces Debt).
