GWR Confident Over Revenue Prospects For the Year

GWR, owner of radio station Classic FM, has said that following a strong start to the year, revenues for the first six months are expected to grow by 3% year-on-year.

However, revenues in the second quarter, especially during August, were slower than anticipated and as a result its analogue sector, which generates 92% of group revenue, is expected to rise by only 2%.

GWR’s Local Radio Group, which purchased the remaining 67% stake in Two Boroughs Radio from Johnston Press in August, will see like-for-like revenues grow by up to 1% in the six months to 30 September 2004, which includes a 3% increase in local revenue and unchanged national revenues – compared to a very strong period of 18% growth last year.

Revenues at its flagship national station Classic FM, are also forecast to be up, growing by 5% year-on-year during the six month period.

Finance director, Wendy Pallot,said: “The group continues to control its costs tightly. Although the outlook for the autumn is less buoyant than previously indicated by the strong first quarter, the board remains confident in the group’s prospects for the year as a whole.”

This morning, GWR and Capital Radio announced the agreed terms of their proposed £711 million merger to create a single broadcaster controlling more than 40% of the radio advertising market (see Capital And GWR Agree £711 Million Merger Terms).

GWR Group: 020 7284 3000 www.gwrgroup.com

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