Capital Radio Group has said that it is ‘cautious’ about radio advertising revenues in October to December, despite radio continuing to outperform the display advertising market.
In a trading update issued this morning ahead of full-year results due on 25 November 2005, the group said, radio revenues for the third quarter are forecast to be up by 4% year-on-year, while revenues for the previous quarter, from April to June, are expected to be up by 5%, pushing the 12 month total for the year ending 30 September 2004 to 4%.
Capital said its increased revenue performance continues to benefit from particularly strong growth from its Century FM Network, London based station, Xfm, and the newly acquired urban radio group, Choice FM.
David Mansfield, chief executive said: “We believe that radio will continue to out-perform the display advertising market. However, radio advertising remains short-term and we are cautious about the outturn for the October to December quarter.”
Also announced this morning, Capital and GWR agreed the terms of their proposed £711 million merger to create a single broadcaster controlling more than 40% of the radio advertising market (see Capital And GWR Agree £711 Million Merger Terms).
Related Links
