GWR Group Announces Record Profits

Radio group GWR has today turned in record profits for the year ended 31 March 1999. The Classic FM operator reports an increase in pre-tax profits of 44% year on year to £18.3 million. Turnover at the group was up 14% to £84.2 million.

Classic FM, the group’s flagship national commercial station, now gains over five million listeners per week according to the latest RAJAR figures.

GWR is poised to begin its digital audio broadcasting (DAB) in October this year through its 63% stake in the Digital One consortium. Digital One was awarded the only national digital multiplex licence in September last year (see Radio Authority Awards Digital Radio Multiplex To Sole Applicant). GWR estimates that the cost of setting up this operation will be around £2 million over the next three years.

Opus, the company’s sales operation which launched in January 1998 (see Opus Gets Ready For Launch), has increased its national revenues by 30% in its first full year. GWR predicts that radio revenue will continue to grow rapidly over the next five years, and expects its own revenues to perform higher than the industry average.

“Our market is forecast to continue to grow at well above average rates and the demand for digital licences has been most encouraging. GWR is well set to exploit a defined range of opportunities in both the short and medium term,” said chairman Henry Meakin.

Reporting the results, GWR chief executive Ralph Bernard, also hinted at an expansion of the group’s internet activities.

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GWR Group: 0171 284 3000