UBC Media Sees Ad Revenue Improvements As Losses Fall
UBC Media, the UK radio group, says that advertising revenues have shown a marked improvement in the last few months of its first half, but claims that trading conditions remain challenging despite a stronger performance since September.
Classic Gold Digital The company’s Classic Gold Digital division saw profits before licence costs rise by 31% to £665,00. Classic Gold Digital owns and produces the Classic Gold Digital format, which is broadcast on a network of analogue AM and digital platforms across the UK.
Unlike the rest of the commercial radio sector, the performance of Classic Gold Digital is not linked directly to the sale of advertising, which is handled by GWR Group, but instead to an audience fee which GWR pays to Classic Gold Digital and which is based on the number of listeners to the Classic Gold Digital network.
Given the inferior reception associated with services broadcasting on AM frequencies, declining audiences have been a long-term characteristic of all ‘Gold’ formats in the UK, including Classic Gold Digital. UBC’s strategy for Classic Gold Digital is based on a belief that Gold services will benefit disproportionately from the migration to digital platforms, of which it is a keen proponent.
“The challenge for UBC continues to be arresting the long-term decline in Classic Gold Digital’s analogue audience in the interim period until the establishment of significant digital audiences,” it says. This year, any decline in analogue audiences has been offset by an increase in sponsorship and promotions revenues.
Shares in UBC Media were unchanged at 35.25p by 10.30am today.
