The Chrysalis Group has announced pre-tax profits of just under £1m for the year ending 31 August 2000. This moves the company back into black, as last year it recorded a loss of just under £6m. The growth was led by profits from the radio division, which increased its turnover at over twice the rate of the rest of the industry- 35% for Chrysalis Radio compared to 15.5% on average. Turnover for the business as a whole was £168m, a 25% increase year on year, from £134.5m. However, the performance of television interests was deemed to be below average.
Chrysalis Radio is now the fourth largest radio group in the country, and managed a turnover of £37.2m during the year, compared to £27.5m in 1999. Its operating profit was £5m, compared to £0.7m last year.
The year has seen Chrysalis submit its first two applications for digital radio licences, through the MXR consortium. In addition Heart 106.2 was launched on Sky’s digital platform and secured carriage on the second London digital multiplex. The company expects the Communications White Paper, due to be published next month, to include a proposal to relax the current radio ownership restrictions, which would in turn lead to further consolidation within the industry.
Operating profits in the visual entertainment division were £0.5m during the year, compared to a loss of £2.5m the previous year. However, Chrysalis described the margins as ‘below industry average’ and is planning stronger controls to remedy this. “Following a major strategic review, the Group is in the process of restructuring the division into three ‘centres of excellence'” explained Chris Wright, chairman of Chrysalis, as he presented the results, “These will major on the division’s key strengths in the areas of drama, light entertainment and sport/factual entertainment. This focused approach is designed to improve the financial performance of the division.”
The group describes itself as “confident” of making “further progress towards goals” this year. Richard Huntingford, previously group managing director, is to be promoted to chief executive.
At 11.30am today shares in Chrysalis Group were up 8½p on the previous day’s closing price, at £2.97½.
