Capital Radio Profits Up 23%

Capital Radio plc has today announced pre-tax profits of £15.6 million, up 23% on last year. Turnover, at £38.1 million is up by 19% year on year.

National advertising revenues have increased by 29% on last year; Ian Irvine, Chairman of Capital said this reflects radio’s share of total display advertising increasing from 2.8% in 1992 to 4.3% in 1995, and he expects this trend to continue. Revenues from local advertising, sponsorship and promotions have also been buoyant.

Mr Irvine also said, “In spite of increased competition, especially in London, our stations have continued to perform very strongly in terms of audiences and revenue. Each of the stations continues to be market leader in its area.”

Once the Broadcasting Bill is introduced, allowing groups to own three radio licences per area, Capital will be able to apply for the new London FM licence recently advertised by the Radio Authority. Mr Irvine also said they will apply for the regional licence covering the East Midlands.

Plans to move the company’s headquarters to Leicester Square have been postponed until the autumn; the project will cost £8m. On the ground floor of the premises there will be a Capital Radio Cafe, to be managed by My Kinda Town restaurant chain.

Mr Irvine also said they are continuing to develop plans to expand overseas and in electronic media.