Capital Set To Develop XFM Brand Nationally, As Group Profits Rise 3.6%

Capital Radio will continue to embrace digital technology and increase its net presence, it announced today, as preliminary annual results for the group reported a pre-tax profit up 3.6% at £37.1 million.

This year has been an active one for the group, with the disposal of its Latin and French restaurant businesses (see Capital Radio 10% Rise In Turnover) and the restructure of its radio operations (see Capital Restructures Radio Operations). It has concentrated heavily on digital technology and has won a number of local digital licences across the country, including the first digital licence for London with its partner EMAP (see Capital And EMAP Win First London Digital Licence). Last month the company signed a deal with the Digital One consortium which will see the launch of the first national Capital station (see Capital Radio To Launch Its First National Station).

Today’s results show the group improving steadily while continuing to invest in its future. Radio revenue increased by 13.1% compared to the same period last year and turnover stood at £125.4 million. One of the key growth areas for Capital in the coming year is the development of XFM, its alternative London station. The group is hoping to build the station into a national brand over a number of platforms, including digital radio, the internet and Sky Digital.

The Capital stations posted good results in the latest RAJAR figures, which saw Capital 95.8FM remain London’s most popular commercial station (see September 1999 RAJAR: London Stations). The latest figures from the Radio Advertising Bureau show that the commercial radio sector as a whole is set to become the fastest growing medium in terms of ad revenue, bar the internet, for the sixth year out of seven (see Commercial Radio Turns In Record Revenue Growth).

Capital Radio: 0171 766 6000