Capital Radio Interim Profits Predicted To Be £18.3m

Broker Merrill Lynch has predicted that Capital Radio’s interim results will show an 8% increase in profits to £18.3 million. Earnings per share are expected to be up 16.4%. Merrill Lynch also predicts that Capital’s gross annual profit will reach £110.9 million by the year 2000.

Radio advertising is predicted to be up 10% in the first half 1997/8. This does not include profit accrued from the MSM sales house which was closed in November last year in line with Capital’s ultimately failed bid for Virgin Radio.

In the light of the Virgin bid, it became clear that Capital would face public interest inquiries for any bid centred on a station in an area where Capital already holds a licence. Partly for this reason, Capital is currently bidding for the North East regional licence with a view to operating the group’s children’s concept called Fun Radio. The Radio Authority, however, has never awarded a new licence to an established company.

Capital Radio’s interim financial results are due on 21 May.

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