The acquisition of LNR, which operates the LBC and NewsDirect stations, will strengthen Chrysalis’ position in the key London market, increasing the group’s share in the capital from 10.4% to 15.9%. The group, which is currently outperforming the radio sector in terms of advertising revenue (see
Chrysalis Revenues 15%pt Stronger Than Radio Sector), plans to relaunch talk radio station, LBC, on the FM waveband and is to transfer rolling news service, NewsDirect, to the AM frequency.
GWR/Scottish Radio joint venture In a separate move, Chrysalis has agreed to sell Bristol-based Galaxy 101 to Vibe Radio Services for £12.5 million. Vibe is a joint venture between Scottish Radio Holdings (51%) and GWR (49%).
The acquisition of Galaxy 101 will strengthen Vibe’s existing offering, which includes classic and contemporary dance music station Vibe FM.
Galaxy 101 was acquired by Chrysalis from GWR in November 1995 for of £4.1 million and Chrysalis has since invested a further £1.7 million in capital to run the station, which made a loss of £334,000 in the year to 31 August 2002, on revenues of £2.4 million. The sale for a sum of £12.5 million should give rise to a profit on disposal in excess of £5 million for the Chrysalis Group.
Phil Riley, Chrysalis Radio’s chief executive, said: ‘The disposal of Galaxy 101 represents an opportunity for Chrysalis to realise a significant profit on our weakest asset in an otherwise strongly performing radio network.”
