Chrysalis Could Sell Off Radio Operations

Chrysalis, owner of Heart and Galaxy, could sell off its radio operations if it goes ahead with a strategic review.

Chris Wright, the company’s founder and 26% majority shareholder, is coming round to a suggestion put forward by Schroder, the group’s second largest shareholder, that its radio business should be sold off, according to a report in today’s Financial Times.

It is thought that the sale of the radio operations is more likely than the company selling off its music publishing business as it has less room for growth.

The Financial Times quotes an anonymous radio executive as saying: “Where are [Chrysalis] going with their business? The Guardian has bought most of the available assets.”

Last Thursday’s RAJAR figures revealed that the company’s Heart station was once again London’s favourite, with the highest weekly reach, share of listening and hours per listener amongst the commercial FM stations in the capital (see Heart 106.2 FM Retains Top Spot In London), as well as having the capital’s favourite breakfast show (see Breakfast Battle Sees Heart 106.2 FM Come Out On Top).

Meanwhile, in a trading update released today, Chrysalis said that its radio division saw its revenues grow 5% year on year in January, following a 10% year on year decline for the last four months of 2006.

The group said that the decline in revenues felt over the final months of 2006 was in line with the overall radio market.

Chrysalis: 020 7221 2213 www.chrysalis.com