Adverse market conditions in radio advertising are expected to persist, according to the Local Radio Company, which has 32 stations around the country.
The company has warned of volatility in the advertising market as it recorded a 1% rise in revenues over the six months to the end of March. It said revenues had risen 2% in April but that trading was worse than expected.
“The overall situation has not improved as previously anticipated and we now expect the adverse market conditions to persist for the foreseeable future,” the company said in a statement.
It said that all options to improve shareholder value were being considered and that any stations not responding to management action would be “traded out of the group”.
Over the first half of the year, turnover was £9.83 million, including a 50% share of revenues from its First Radio Sales joint venture. National advertising sales increased by 8% over the period, while local advertising grew by 1% at a time when the market was in decline, the company said.
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