The Wireless Group (TWG), has announced a year on year rise of over 50% in adjusted operating profits for 2004, showing revenue for the first quarter of 2005 to be up 9.9% on the same period last year.
Total turnover for the Group was £39.7 million, up 22% from £32.6 million in 2003, while like for like turnover totalled £36.3 million, a rise of £36.8% compared with 2003.
TWG’s flagship radio station, talkSPORT revealed adjusted operating profit of £2.6 million, up £36.8% from £1.9 million in 2003.
The Group’s local stations reported operating profits for 2004 of £6.8 million, up from £5.6 million, with like for like operating profits up to £6.2 million from £5.6 million in 2003.
Commenting on the company’s performance, Kelvin MacKenzie, chairman and chief executive of TWG said: “The first quarter of 2005 has started well with cash revenues for the group up 9.9% against the same quarter in 2004. I expect national revenues will be affected in April by the General Election with some advertisers not spending until after the General Election in May.”
The outlook for 2005 looks positive, with talkSPORT expected to continue to perform strongly.
In a statement to the City, the independent directors of TWG confirmed recent industry speculation that the Group had received a number of potential offers for the company (see Wireless Group To Be Auctioned).
The statement said: “The Board confirms it is in ongoing discussions with a number of potential offerors which may or may not lead to an offer for the company. The Board is not currently in a position to provide any further information and further announcement will be made as appropriate.”
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