Capital Radio released its preliminary full year results today, revealing a 9.5% year on year rise in profit before tax, which reached £41.3m, compared to £38.3m last year. Radio revenues grew by 13.9% over the year, but the acquisitions of the Beat 106 (see Capital Buys Beat 106, Announces Online Plans) and Century brands took overall revenue growth to 17.8%.
The acquisition of the Century radio brand came as part of Capital’s take-over of Border Television (see Capital Radio Wins Battle For Border) for £159m. The company reports that a put and call arrangement has now been entered into for the sale of Border’s TV business to Granada Media Group for £50.5m (see Granada Agrees To Buy Border TV Assets). The acquisition of Beat 106 for £33.7m was financed by the issue of new Capital shares. Exceptional restructuring costs of £1.7m were incurred in relation to these acquisitions.
Capital’s aim this year has been to consolidate its position as a leading UK commercial radio group, and to this end it has managed to increase its potential analogue coverage from 34% to 58% of UK adults, while adult listening hours have been increased by 24% according to Rajar. Under present regulations, which the company anticipates will be relaxed by legislation in 2002, Capital Radio can acquire one further regional licence. It therefore plans to apply for a new licence for Yorkshire in the Spring of next year. It also said it was actively looking for partners outside the UK in order to establish “a significant presence” in Europe.
The company states that analogue radio will “continue to be our primary means of distribution for some time to come.” However, in the future it anticipates that further development of its brands will occur across platforms including digital radio, digital television, satellite and the internet. This year saw the launch of Capital’s national digital radio station LIFE, followed by the launch of local digital stations in London, Manchester, Birmingham, Glasgow and Cardiff. As a member of the MXR consortium Capital is also applying for multiplexes in the the North and Midlands as well as the third London multiplex (see New Digital Radio Consortium Targets Regions).
Investment this year ran to £1.7m in XFm, £1.3m in digital radio and £4.2m in online music websites through Capital Interactive. Next year, investment plans will see £2m put towards strategic marketing, £1.7m towards Xfm, £3.2m into digital radio and £4m to Capital Interactive.
For the current quarter, like-for-like revenues are said to be in line with expectations, while the benefits of the investment in various brands are expected to “impact positively on revenues and profits in the second half.”
Capital Radio: 020 7766 6000
Subscribers can access further information on Capital Radio and other radio groups by selecting “Radio” from the drop-down box at the top of this page.
