Chrysalis Turns Corner Into Profit

Chrysalis Group released interim results today which showed profit across all four of its divisions for the first time. Group managing director Richard Huntingford says he is “delighted”. The group’s turnover for the six months ended 29 February 2000 was £81.7m, up 28% on the 1999 figure. Operating profit was £1.2m and pre-tax profit £0.2m.

Radio revenues increased 34% compared to last year, to £16.5m. However, start-up losses of £1.3m from the Galaxy stations and Chrysalis Radio Online meant that pre-tax profits for the division were £0.6m.

Chrysalis also announced £15m of investment commitment for new media initiatives today, as part of its stated strategy in this area. A total of £4m will go towards the creation of a music and lifestyle website called Ride the Tiger, while £3m will go towards acquiring 35% of www.darkerthanblue.com, a black music and urban culture site. Another £4m will be invested in the acquisition of a 30% stake in the Citipages local internet portal, £1m will go towards the development of Chrysalis Media Sales to incorporate inventory on both radio and internet for all companies in the group, and a maximum of £3m will be invested in creating an electronic picture library. The group raised £26.8m in January through an equity placing in order to accelerate its new media strategy (see Chrysalis Unveils Web Strategy).

The New Media division as a whole reached profits of just over £450,000, partly gained through the sale of a 40.5% stake in Taxi to Affinity Internet Holdings, which generated £3.7m. Mr Huntingford said “1999 was targeted as the final year of losses for each of the core divisions that we have been building.”

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