GCap’s share price dropped today following the release of the latest RAJAR listening figures, which revealed that in Q2 Capital Radio had its lowest ever share of the audience.
At one point this morning, the company’s share price fell by 9% to 216p, from yesterday’s close of 237.5p.
However, at 1.05pm, GCap’s price had rallied slightly to 221p, down 16.5p or 6.95% on yesterday.
A report on MediaGuardian.co.uk quotes media analysts Numis as saying: “GCap has marketed Capital in the quarter, so there can be no excuses for these results.
“These desperately disappointing RAJARs put pressure on revenues and make the group’s margin target – 12-14% run rate by 2009 – look a stretch.
“We need to work through our valuation, but expect to lower our recommendation from ‘hold’ back down to ‘reduce’ this morning to reflect deteriorating fundamentals in the group.”
Related Links
