Guardian Media Group Radio this morning announced the acquisition of a controlling stake in Reading 107 FM.
The radio group has increased its shareholding in the Berkshire-based station from 37.8% to 60.3% with immediate effect, securing control of the station, which covers an area of 257,000 potential adult listeners across Reading.
The station currently relies on a popular music broadcast format, having launched in October 2002. The latest RAJAR data for the three months to June 2005 show the station commanding a weekly reach of 36,000, although this is down 12.2% year on year.
GMG Radio took the opportunity for control of the station after Milestone Radio Group decided to sell its stake.
The remaining shareholding is owned by the Goodhead Group plc, a company controlled by Reading Football club chairman John Madejski.
Commenting on the acquisition, GMG Radio chief executive John Myers said: “We were one of the original shareholders in Reading 107 FM and are proud of its achievement to date so it makes sense to increase our stake to a level where we can now offer further management support. There are no plans to change the station’s name or format. We aim instead to increase the level of local output and invest in marketing in order to grow the audience further.”
The station will now join GMG Radio’s existing portfolio of five regional Real Radio and Smooth FM stations, which broadcast across London, south and west Wales, Scotland, Yorkshire and the north west of England.
Earlier this month, GMG announced that it had seen it’s profits impacted on by projects amounting to more than £100 with pretax profits for the Group almost halving, dropping to £22.9 million from £43.8 million this time last year (see GMG Sees Profits Almost Halve).
Group turnover for GMG, however, increased by 18% to £751.9 million for the period and total operating profit was shown to be up to £122.4 million from £84.5 million.
In May, GMG announced positive end of year trading, enjoying revenue growth of 17% year on year for all its stations, signalling a move to profit for the first time (see UBM To Pay Hollick £250k Bonus).
The radio division of GMG has shown remarkable growth, outperforming the industry as a whole, with revenues from Jazz FM and Smooth FM stations rising to £24.5 million in the financial year ended 31 March, up from £21 million the previous year.
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