Capital Radio Sees ‘Modest’ Revenue Growth Ahead

Capital is seeing strong revenue growth at its London alternative station, Xfm, as well as across the Century FM network. Its flagship London station, Capital 95.8, is faring less well – at least in audience terms. The station’s weekly reach fell by 6.3% year on year to 2.3 million in Q4 2003, although a quarter on quarter comparison shows 1.5% growth (see Capital Playing Catch-Up, Says Merrill Lynch).

Capital’s statement comes just after rival group Chrysalis Radio posted a 19% rise in revenues during the five months since September 2003. To make matters even more difficult for Capital, Chrysalis says that following this ‘exceptional’ revenue performance, it is planning to boost its marketing activity, particularly in the London area (see Chrysalis To Boost Marketing As Radio Revenues Jump 19%). Chrysalis’ Heart 106.2 is hot on the heels of 95.8 to become London’s most popular station.

Capital says that January 2004 revenues increased by 1% year on year. The company is anticipating that February and March revenues will also show ‘modest’ growth. A further trading update is due on 1 April 2004.

Shares in Capital Radio were up by 1.3% at 564p by 11.15am today.