GWR Issues Trading Update In Attempt To Reassure Commercial Radio Investors

After Capital Radio’s profits warning yesterday (see Capital Shares Plummet As Trading Statement Warns Of Half Year Revenue Below Expectations) shook the commercial radio sector, GWR has issued a trading update in order to restore some confidence.

In its pre-closed period trading update the group indicated to investors that results for the full year to 31 March are likely to show like for like radio revenues for the six months to March 2001 to be up 10% on the same period last year, while trading profit for the year is currently expected to be in line with the expectations of January this year.

While acknowledging the “difficult trading conditions” prevalent in the current national radio advertising market, GWR pointed to its own broad spread of activities, which includes 40% of revenues being drawn from the more stable UK local market. Success stories such as Classic FM and a growing involvement in digital radio, including the acquisition of a 63% controlling stake in Digital One is said to make the GWR board confident about medium and long term prospects.

Having suffered heavy reductions during yesterday’s trading (see Sharewatch), shares in GWR had regained momentum this morning, jumping 20p to £4.42½ by 10.40am.

GWR: 020 7284 3000 www.gwrgroup.co.uk

UK media shares are monitored and listed daily in MediaTel Newsline’s Sharewatch