Commercial radio group, Capital Radio plc, has today issued a trading update, saying that the group’s overall revenue has dropped by 4% in the quarter from October to December 2004.
The update is reflective of the challenging market conditions faced by the radio industry over the past few months. However, the Group is optimistic that the radio market is strengthening and anticipates that its January revenues will be flat year on year.
Last month, the Office of Fair Trading (OFT) announced that it would not refer the proposed merger of Capital and radio group GWR (see Capital And GWR Agree £711 Million Merger Terms)to the Competition Commission. The decision was subject to an undertaking to divest 106 Century FM in the East Midlands.
Capital is currently in discussions with the OFT regarding this and will be given the go ahead once the OFT’s statutory consultation is completed. The merger is expected to be completed in early May this year.
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