GCap Revenues Decline

GCap Media has released its annual financial results, revealing that its revenue for the year was down 9% at £200.1 million.

The news follows the recent announcement that Duncan George, the group’s commercial director, is to leave the company on June 8 (see Duncan George To Leave GCap).

The results also revealed that GCap’s profits were down from £22.2 million in 2006 in £14.4 million, whilst its advertising revenues dropped 8% to £167.5 million.

In March, GCap’s flagship station Capital 95.8 underwent a revamp accompanied by a major ad campaign (see Capital Radio Gets Name Change And Ad Campaign), whilst Xfm, the group’s indie rock station, decided this month to ditch DJs from its daytime schedule (see Xfm Confirms Daytime Format Change).

Ralph Bernard, GCap Media chief executive, said of today’s results: “In the past year we have made considerable progress towards our strategic objectives, consolidating our audiences and revenues and preparing the business for growth. We have also achieved further cost savings, ensuring the business is run as efficiently as possible.

“We have invested in our key stations, particularly in Capital 95.8, stabilising audience figures across the group. We have initiated a significant upgrading of our online offering to further our strategy of leveraging our brands across multiple platforms.

“The market remains difficult to predict but we have seen an improving trend in advertising revenue performance and we outperformed the market in the last quarter of the financial year.”

GCap Media: 0207 663 7000 www.gcapmedia.com