GWR Profits Treble With Strong Local Group Performance

Sales at the group, which owns Classic FM, have improved at a faster rate than the industry as a whole, with UK radio advertising revenues up by 5% versus around 3.3% total radio revenue growth. GWR also says that investment in new operational systems has enabled the company to extract greater value from airtime sales.

Like for like UK analogue revenues were up 5% at £55.3 million, 75% of which was derived from the Local Radio Group (LRG) businesses – the ‘engine’ of GWR’s growth. Total group revenues for the six months were essentially flat at £62.4 million.

Commenting on the results, executive chairman Ralph Bernard said: “Our efforts to restructure and refocus the business over the last twelve months have begun to bear fruit. We have seen sharp improvements in our operating margin and profitability with the Local Radio Group outstripping the competition.”

Outlook After an uncertain start at the beginning of the financial year, trading conditions and visibility have begun to improve. There has been a more positive outlook particularly during August and September. GWR expects that LRG will continue to outperform the industry as a result of improvements made in the division.

Group advertising revenues were up by 16% year on year in October and are expected to grow by 9% in November on the same basis. “Given current trading conditions and GWR’s focus on improving margins, generating cash and increasing the yield from our advertising sales, the Board has growing confidence in a positive outcome for the full year,” said today’s statement.

Rival company, Chrysalis Radio, yesterday issued its full-year figures which showed continued strong growth (see Chrysalis Profits Surge As Outperformance Continues).

Shares in GWR Group were up by 4.8% at 256.75p by mid-morning today.