Advertising revenue at GCap Media could fall by as much as 15% this month, compared to the same time last year, with industry analysts blaming some of the decline in the recent changes at Capital Radio, which saw its advertising airtime half last month.
The consensus in the advertising industry is that it has been a difficult start to the year for GCap, with a group of agencies saying that the business has underperformed compared to the rest of the UK radio market, according to a report in today’s
Times.
GCap’s latest trading statement was not optimistic, showing a drop of 27% in operating profit in the six months to the end of September, reaching just £14.7 million. Revenues for the group were also shown to be down, by 11% at £111.6 million (see Audiences and Profits “Unacceptable” says GCap’s Bernard).
The company recently announced that it was selling nine stations and re-branding in other key areas, such as digital radio station Storm being re-branded as XFM and analogue station Capital Gold combining with national station Life (see GCap Media Sells Stations And Announces Rebrand Plans).
GCap Media formally began trading in May, creating a single broadcaster with combined airtime sales accounting for nearly 40% of the UK’s commercial radio market, based on total listening hours (see GCap Media Begins Trading).”
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