GWR Raises Stake In London Digital Multiplex

GWR Group has increased its stake in Digital Radio Group (DRG), the third London digital multiplex, from 23.6% to 30.2%, it announced this morning. It has increased its holding through the £3.3 million acquisition of shares from Clubmend, Asian Sound and Matsushita Electric Europe.

GWR provides a range of digital services on DRG through its NOWdigital brand, which began broadcasting in January 2001. These include gay station Gaydar Radio; children’s station Abracadabra and modern rock station The Storm.

In addition to its shareholding in DRG, GWR holds the majority share in the national multiplex licence Digital One, significant interests in 14 other local digital multiplexes and operates three national digital services. It also owns national commercial station Classic FM.

GWR has long been a keen proponent of digital audio broadcasting (DAB) and its executive chairman, Ralph Bernard, has written to culture secretary, Tessa Jowell, and Ofcom chief executive, Stephen Carter, to demand a target date that would enable the entire country to be converted to digital.

Commenting on the acquisition of shares in DRG today, Bernard said: “GWR has always been at the forefront of the transition from an analogue to a digital world. This acquisition strengthens our position in London and complements our leading presence in the regions.”

Sales of digital radio sets reached 300,000 during 2003, with 133,000 sold in December alone, according to the Digital Radio Development Bureau (DRDB). By the close of the year there were 435,000 homes with DAB equipment, an increase of 222% over 2002.

GWR Group: 020 7284 3000 www.gwrgroup.com

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