Chrysalis Radio Revenues Decline

Chrysalis, which owns Heart, LBC and Galaxy, said that the decline was due to poor radio ad takings, adding that revenues for its third quarter are likely to be flat and forward bookings for the fourth quarter are currently strong and showing double digit growth over last year. It therefore anticipates a flat revenue outturn for the full year.

In its interim results Chrysalis said that revenues across the group in the six months to the end of February were £58.3 million, down from £68.7 million last year.

The radio and music group also added that it is making good progress with its strategic review (see City), which could lead to the sale of its radio business, saying that it had “received a range of different proposals and a number of offers, and we will provide further updates in due course.”

However, a recent report in the Financial Times said that the auction of its radio operations has not reached the demand levels anticipated (see Little Interest In Chrysalis Auction).

Richard Huntingford, chief executive, said: “Chrysalis Group has performed broadly in line with budget in the first six months and both our radio and music publishing businesses continue to meet the expectations set out by the Board at the beginning of the financial year. As such, we are confident that we can continue to outperform our markets in the current year.

“This is an encouraging performance given the ongoing volatility and change being experienced by the media sector. It is with these changes in mind, and consistent with our long held commitment to ensure that our businesses are best placed to deliver value to shareholders, that we are currently reviewing the strategic options available to our Radio business. We are making good progress with the review, having received a range of different proposals and a number of offers, and we will provide further updates in due course.”