Capital Radio Takes Stake In Choice FM

Choice FM broadcasts to a potential audience of 5.8 million adults in London – 96.9FM has been broadcasting to South London since 1990 and 107.1FM began broadcasting to North London last year. The format of Choice covers all types of urban contemporary black music. Choice also owns a network of four digital licences for London, the North West, the North East and the Severn Estuary as well as a 7% share in the MXR digital radio consortium.

In the twelve months to September 2001 Choice had revenue of £1.4 million, made a loss on its analogue operations before financing costs of £100,000 and invested £100,000 in its digital activities.

Capital says that its shareholding in Choice is a strategic investment made in anticipation of changes in the media ownership regulations in the UK. “Capital believes Choice has significant opportunities under its existing formats to grow its audience and share across London both within the black community, which has more than doubled in size over the past ten years, and amongst other listeners who appreciate the music it plays,” read the statement.

David Mansfield, chief executive of Capital Radio, said: “Choice is an excellent investment for Capital. It brings to us a stake in a brand that has exciting growth potential and operates in an important music genre. We anticipate increasing our shareholding and becoming more involved in the business when the Radio Authority proposals for relaxing ownership gain Government approval.”

Comment Capital Radio has a strong track record when it comes to buying smaller, often nice-format radio stations and turning them into bigger, well-promoted brands. As an example, Xfm’s profile and audience levels have grown since its acquisition by Capital in June 1998.