Capital Radio Cautious Over Fourth Quarter Results

Capital Radio Group has said that it is ‘cautious’ about the outcome for radio advertising in October to December, despite radio continuing to outperform the display advertising market.

In a trading update issued this morning ahead of full-year results due on 25 November 2005, the group said radio revenues for the third quarter are forecast to be up by 4% year-on-year, while revenues for the previous quarter, from April to June, are expected to be up by 5%, pushing the 12 month total for the year ending 30 September 2004 to 4%.

Capital said its increased revenue performance continues to benefit from particularly strong growth from its Century FM Network, London based station, Xfm, and the newly acquired urban radio group, Choice FM.

David Mansfield, chief executive, said: “We believe that radio will continue to out-perform the display advertising market. However, radio advertising remains short-term and we are cautious about the outturn for the October to December quarter.”

Earlier today GWR, owner of radio station Classic FM, said that following a strong start to the year, revenues for the first six months are expected to grow by 3% year-on-year. However, revenues in the second quarter, especially during August, were slower than anticipated and as a result its analogue sector, which generate 92% of group revenue, is expected to rise by only 2% (see NewsLine).

Capital Radio: 020 7766 6000 www.capitalradiogroup.com

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