GMG Reveals 17% Revenue Growth Across All Stations
Guardian Media Group (GMG) has announced a positive end of year trading update, enjoying revenue growth of 17% year on year for all its stations, signalling a move to profit for the first time.
The radio division of GMG has shown remarkable growth, outperforming the industry as a whole, with revenues from Jazz FM and Smooth FM stations rising to £24.5 million in the financial year ended 31 March, up from £21 million the previous year.
Commenting on the Group’s performance, John Myers, GMG chief executive said: “This is an impressive increase by any standard and given that most other radio groups have seen their revenues slide in the last year, our group has outperformed the market by a considerable distance.”
Breaking down GMG’s radio stations; Smooth FM increased turnover by an impressive 53%, while London’s Jazz FM saw revenue rise by 10%. Scotland’s Real Radio reported an increase of 23%, with its Yorkshire counterpart enjoying a rise of 11%. Real Radio in Wales saw turnover grow by 7% year on year.
JazzFM will disappear from London’s airwaves later this year as the company rebrands its station as Smooth FM order to appeal to a wider audience of listeners and boost its weekly reach (see GMG Drops JazzFM Brand To Smooth Over Audience Woes).
The move follows the success of Smooth FM in the north west, which was rebranded from JazzFM last March. The London-based station will adopt the new brand from the third quarter of 2005, targeting a wider audience of listeners and supported by a multi-million pound TV and outdoor campaign across the capital.
GMG also revealed that increases in revenues from national advertisers in the year grew by 14%, while the company’s regional sales arm, GMG Radio Sales, recorded a massive 72% rise in turnover. Sponsorship and promotions activity for the Group is shown to remain extremely buoyant, up 30% on the year.
Bob Phillis, chief executive officer of GMG added: “Radio is an important part of GMG’s portfolio of media businesses. We are delighted with the progress make by all five stations during the year and I look forward to further growth and commercial success based on these solid foundations.”
GMG also revealed that it would be looking for further licence applications and appropriate acquisitions as and when they become available.
GMG recently quashed rumours that it was considering selling its radio stations for less than £150 million, and is reported to have rejected a £115 million offer for its radio division from Chrysalis. GMG is thought to value its stations at between £150-£175 million, according to a report in the Times (see GMG Quashes Imminent Deal Rumours).
Guardian Media Group: 020 7713 4452 www.gmgplc.co.uk/