Chrysalis Not Pressured By Capital GWR Merger
Richard Huntingford, chief executive of the Chrysalis Group, has said that the prospect of increased consolidation in the radio sector should not put pressure on companies to merge as a “knee-jerk” reaction.
The radio boss stated that the increased focus on consolidation, particularly the proposed merger between Capital and GWR, does not make him feel pressured into following the same route with Chrysalis.
He said: “The worst thing you could do is feel pressurised into some knee-jerk action that had you chasing some overpriced media asset.”
However, Hutingford did confirm that Chrysalis has reviewed its own acquisition oportunities, deciding instead to concentrate on existing brands, and the growth still available to them.
“We’re very fortunate in still having a lot of organic growth we can drive out of our existing portfolio of brands,” he said. “That’s the strategy we want to continue with.”
The prospect of high-profile mergers has dominated the radio industry over the past few months, with Capital and GWR’s proposed consolidation on the verge of referral to the Office of Fair Trading should advertisers and rival radio groups call for an enquiry into the deal (see Capital/GWR Merger Could Face Competition Enquiry).
The proposed £711 million merger could be delayed by up to six months by a Competition Commission investigation, as influential advertising groups ISBA and the IPA voice their concerns that the combined entity, which would control more than 40% of national radio advertising revenue, would dominate the industry and could push up the cost of airtime (see Capital And GWR Name Team For Single Sales House).
This morning saw Chrysalis unveil final results for the 12 months to August, revealing a massive 370% increase in operating profit to £8.3 million but forecasting a that revenue growth for the radio industry as a whole may flatline for the three months to November.
Chrysalis: 020 7221 2213 www.chrysalis.com
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