GWR Losses Deepen To £12m As Tough Market Conditions Bite

Losses at the UK’s largest commercial radio group, GWR, have risen to £12.1 million for the six months ended 30 September 2002, in what chairman Ralph Bernard describes as a period of ‘volatile and difficult trading conditions’. Total loss for the same period in 2001 was £1.9 million.

Turnover at the group remained flat year on year at £62.3 million this time, from £62.4 million last time. Operating profit before goodwill amortisation and exceptionals was down by 19.4% at £5.8 million.

The tough figures come after continuing poor conditions for advertising, with the radio market remaining unpredictable. GWR says that although trading for Q4, in the run up to Christmas, is looking more encouraging, there is little visibility into the new year. October and November are expected to be flat year on year.

This is a better performance than indicated by Capital Radio, which expects October and November to show an 8% decline overall, with October down heavily and November flat. Emap also expects revenue to be flat in its H2.

GWR is assuming that there will be no significant upturn in advertising for the foreseeable future.

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