GCap has reported a fall in profits with annual pre-tax revenue to the end of March down 40% to £22.2 million. On a statutory basis, including the effect of amortisation and other charges, the company made a loss before tax of £47.9 million.
One of the main reasons for the slump is said to be the revamp of Capital Radio and its dramatic new advertising policy. The new regime, which is designed to reposition the station as London’s market leader, cost GCap £2.4 million in revenues in the final quarter of the financial year and is expected to cost the company £7 million in the next financial year.
GCap Media chief executive, Ralph Bernard, said: “In the past year we have created the UK’s leading commercial radio operator, carrying the cost of significant change against the background of a difficult advertising environment and audience declines at many of our stations.
“Media markets are changing fast and at GCap, we are creating the strategy to deliver improved profitability by developing strong national networks and increasing audiences in the most commercially important demographics.”
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