Capital Radio Reports Profits Up 12%

Capital Radio has reported a strong set of interim results, with radio profit up 12% to £18.8 million for the six months to 31st March 1999. Radio turnover was up 18% to £51.7 million and group turnover also rose by 14% to £63.3 million.

In terms of radio advertising revenue, sales house Capital Advertising leads the airtime sales market with a 32% share of national radio advertising. Capital Radio as a group continues to perform well with a 25% share of all total radio advertising, according to the statement.

Captial’s interim report welcomes the advent of digital radio. It specifically sees local digital radio as providing an excellent opportunity to increase the number of stations the group owns in order to maximise audience size and advertising revenue. However, Capital forecasts digital radio benefits will only accrue after “some years” due to the lag between the introduction of digital radio hardware and mass consumer take-up. “High costs relating to the national digital multiplex”, says the report, “deterred us from applying.”

CE Digital, Capital’s joint venture with EMAP, has so far been awarded the local digital radio licence for the Birmingham area (see RA Awards First Digital Radio Multiplex To Emap/Capital Consortium), and has applied unopposed for the Manchester multiplex (see Capital/EMAP Consortium Bids For Manchester Digital Radio Licence). The two radio groups have also submitted a proposal to the Radio Authority for the London digital multiplex. This application is being contested by a Chrysalis/Border service, MXR London (see Chrysalis Announces London Digital Radio Bid), and Switch Digital, a venture created by Talk Radio, Virgin Radio and Clear Channel (see Switch Digital Submits Bid For London Digital Radio Licence).

Capital Radio: 0171 766 6000