Capital Radio Reports Increased Revenues

Capital Radio reported a 12% increase in revenues during the last quarter of 2000 following the successful acquisition of Beat 106 (see Capital Buys Beat 106, Announces Online Plans) and Century Radio (see Capital Radio Wins Battle For Border). In its Annual General Meeting today the group said like for like revenues across the three month period were up 4% and similar increases are expected for the first quarter of 2001.

Planned levels of expenditure announced in November last year (see Capital Plans More Brand Investment For 2001, As Full Year Sees 9.5% Profit Rise) are still on track, despite a predicted downturn in adspend. “Although we remain cautious regarding current trends in the advertising market, we believe the longer term prospects for radio advertising are very positive,” a trading statement read.

Continued investment in digital radio is at the core of its plans. Yesterday Capital gained a further regional digital multiplex licence as part of the MXR consortium (see MXR Wins Second Digital Licence) and the group hopes to reach 85% of the UK adult population with its digital output by 2002. Forming a national network of its alternative station Xfm across its digital licence gains is a crucial part of this plan.

Capital Interactive, which launched the first of three planned web stations last year (see Internet Round-Up), will also take a large chunk of this year’s investment. A spokesperson for the group told Newsline that the final two web stations are expected to roll out in the next six months.

Capital Radio: 020 7766 6000